Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, as revenue remained stable. The decline was driven by lower operating cash flow despite slightly higher capital expenditure.
- Revenue was unchanged from the prior quarter and the year-ago period, but operating cash flow declined, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter and similar to the year-ago level.
- Compared to the prior quarter, free cash flow and margin were lower, and operating cash flow also decreased. Versus the same quarter one year earlier, free cash flow and margin were lower as well, with operating cash flow declining.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$201.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$258.0M
Cash generated by operations before capital spending.
CapEx
$56.1M
Capital spending and related asset purchases.
FCF margin
10.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-09-30 | $1.8B | $388.1M | $46.9M | $341.2M | 18.5% |
| 2023-12-31 | $1.8B | $354.0M | $36.3M | $317.7M | 18.1% |
| 2024-03-31 | $1.9B | $335.6M | $50.8M | $284.8M | 15.0% |
| 2024-06-30 | $1.9B | $258.0M | $56.1M | $201.9M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $20.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Inventory swing
According to the filing, inventory turned from a significant source of cash in the year-ago quarter to a modest use of cash in the current quarter, contributing to the decline in operating cash flow.
This working capital shift weighed on operating cash flow and consequently reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and the year-ago period, but operating cash flow declined, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter and similar to the year-ago level.
Compared to the prior quarter, free cash flow and margin were lower, and operating cash flow also decreased. Versus the same quarter one year earlier, free cash flow and margin were lower as well, with operating cash flow declining.
Monitor inventory levels and their effect on working capital, as inventory shifted from a source of cash to a use of cash.