Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Flex Ltd.'s free cash flow improved sequentially and year over year, driven by higher operating cash flow. Revenue grew modestly while capital expenditure declined from the year-ago period, contributing to a stronger free cash flow margin.
- Cash conversion strengthened as operating cash flow grew faster than revenue, and capital expenditure was lower than a year ago. The free cash flow margin expanded compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue and operating cash flow increased, while capital expenditure was slightly higher. Free cash flow and margin both improved. Versus the same quarter last year, all metrics improved except capital expenditure, which was lower, further boosting free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$301.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$413.0M
Cash generated by operations before capital spending.
CapEx
$112.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-27 | $6.5B | $319.0M | $103.0M | $216.0M | 3.3% |
| 2024-12-31 | $6.6B | $413.0M | $112.0M | $301.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased notably from both the prior quarter and the same quarter last year, providing the main lift to free cash flow. This improvement occurred alongside revenue growth, while capital expenditure remained contained relative to the year-ago level.
The strengthened cash generation supports the company's ability to invest and manage its capital structure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow grew faster than revenue, and capital expenditure was lower than a year ago. The free cash flow margin expanded compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue and operating cash flow increased, while capital expenditure was slightly higher. Free cash flow and margin both improved. Versus the same quarter last year, all metrics improved except capital expenditure, which was lower, further boosting free cash flow.
The filing notes that logistical constraints persist, leading to higher freight costs; this is an area to monitor for potential pressure on cash flow.