Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved markedly versus both the prior quarter and the same quarter one year earlier, supported by higher operating cash flow and reduced capital spending. Revenue declined compared to both periods, but cash generation strengthened.
- Operating cash flow was well above capital expenditure, leading to a healthy free cash flow margin. The company converted a substantial portion of its revenue into free cash flow.
- Compared to the immediately preceding quarter, free cash flow was higher and margin improved, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow also rose while revenue was lower, reflecting better cash conversion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$796.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$598.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$679.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $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% |
| 2024-03-31 | $6.2B | $679.0M | $81.0M | $598.0M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$787.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Improvement
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, while capital expenditure decreased.
This improvement was the primary factor behind the expansion in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was well above capital expenditure, leading to a healthy free cash flow margin. The company converted a substantial portion of its revenue into free cash flow.
Compared to the immediately preceding quarter, free cash flow was higher and margin improved, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow also rose while revenue was lower, reflecting better cash conversion.
Monitor the impact of the Nextracker spin-off completed during the quarter, as the change in ownership structure may affect future cash flows and reporting segments.