Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Flex's free cash flow declined in the December quarter compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. The filing notes that component shortages and logistical constraints have improved, but the company continues to monitor potential supply chain disruptions.
- Cash conversion weakened as operating cash flow fell more sharply than capital expenditure, resulting in a lower free cash flow margin.
- Compared to the September quarter, revenue, operating cash flow, and free cash flow all decreased. Versus the same quarter a year ago, the same metrics were lower, though the free cash flow margin declined less steeply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$468.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$154.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$284.0M
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
2.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $7.0B | $450.0M | $180.0M | $270.0M | 3.9% |
| 2023-06-30 | $6.9B | $6.0M | $167.0M | -$161.0M | -2.3% |
| 2023-09-29 | $6.9B | $357.0M | $152.0M | $205.0M | 3.0% |
| 2023-12-31 | $6.4B | $284.0M | $130.0M | $154.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$670.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow decreased versus both the prior quarter and the year-ago quarter, while capital expenditure also declined. The decrease in cash generation outpaced the reduction in capital spending, resulting in lower free cash flow and margin.
The weaker operating cash flow directly reduced free cash flow, indicating reduced cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow fell more sharply than capital expenditure, resulting in a lower free cash flow margin.
Compared to the September quarter, revenue, operating cash flow, and free cash flow all decreased. Versus the same quarter a year ago, the same metrics were lower, though the free cash flow margin declined less steeply.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the reduced free cash flow.