Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Overall cash conversion deteriorated sharply as operating cash flow turned negative, leading to a free cash flow deficit. Revenue was lower than the prior quarter but higher than the same quarter last year, yet cash generation weakened significantly.
- Revenue improved compared to the year-ago quarter, but operating cash flow swung to a negative figure, resulting in a negative free cash flow margin. Capital expenditure decreased relative to the previous quarter but was similar to the year-ago level.
- Compared to the immediately preceding quarter, revenue and all cash flow metrics declined, with operating cash flow and free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were much lower, indicating a weakened cash conversion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$437.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$278.0M
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
-4.1%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $10.2B | $731.0M | $212.0M | $519.0M | 5.1% |
| 2023-10-01 | $10.6B | $1.3B | $227.0M | $1.1B | 10.3% |
| 2023-12-31 | $11.7B | $1.2B | $304.0M | $892.0M | 7.6% |
| 2024-03-31 | $10.7B | -$278.0M | $159.0M | -$437.0M | -4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -54.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | 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 Swing
Operating cash flow shifted from a positive contribution in both the prior quarter and the year-ago quarter to a negative figure in the current period.
This swing drove free cash flow from a surplus to a deficit, marking a significant deterioration in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue improved compared to the year-ago quarter, but operating cash flow swung to a negative figure, resulting in a negative free cash flow margin. Capital expenditure decreased relative to the previous quarter but was similar to the year-ago level.
Compared to the immediately preceding quarter, revenue and all cash flow metrics declined, with operating cash flow and free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were much lower, indicating a weakened cash conversion.
Monitor the company's ability to restore positive operating cash flow, especially given its stated emphasis on cash flow generation and working capital management.