Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, though it weakened sequentially. The cash conversion margin decreased from the prior quarter despite a slight increase in revenue.
- Operating cash flow declined sharply from the prior quarter, while capital expenditure increased, resulting in lower free cash flow and a narrowed margin. Revenue was slightly higher, indicating weaker cash conversion efficiency.
- Compared to the previous quarter, free cash flow and margin both weakened, driven by lower operating cash flow and higher capital spending. Versus the same quarter a year ago, free cash flow improved from negative to positive, with a significantly stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$229.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$340.0M
Cash generated by operations before capital spending.
CapEx
$111.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $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% |
| 2024-06-28 | $6.3B | $340.0M | $111.0M | $229.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$972.0M | 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 decline
The sharp reduction in operating cash flow from the prior quarter was the primary factor behind the decrease in free cash flow, even as revenue edged higher.
Weaker cash generation from operations may limit financial flexibility if the trend persists.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined sharply from the prior quarter, while capital expenditure increased, resulting in lower free cash flow and a narrowed margin. Revenue was slightly higher, indicating weaker cash conversion efficiency.
Compared to the previous quarter, free cash flow and margin both weakened, driven by lower operating cash flow and higher capital spending. Versus the same quarter a year ago, free cash flow improved from negative to positive, with a significantly stronger margin.
Monitor potential supply chain disruptions and elevated freight costs, as noted in the risk factors and liquidity discussion, which may pressure cash flow.