Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened both sequentially and compared to the same quarter last year, driven by lower operating cash flow and higher capital expenditure. Revenue was stable relative to the prior year but slightly lower than the preceding quarter.
- Operating cash flow declined relative to revenue, while capital expenditure increased, resulting in a lower free cash flow margin compared to both the prior quarter and the year-ago period.
- Compared to the preceding quarter, all cash flow metrics weakened: operating cash flow, free cash flow, and margin declined, while capital expenditure rose. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin narrowed, with revenue essentially flat.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$274.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$419.0M
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
5.9%
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 | $4.7B | $468.0M | $143.0M | $325.0M | 6.9% |
| 2023-06-30 | $4.8B | -$67.0M | $70.0M | -$137.0M | -2.8% |
| 2023-09-30 | $4.8B | $650.0M | $80.0M | $570.0M | 11.8% |
| 2024-03-31 | $4.7B | $419.0M | $145.0M | $274.0M | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.7B | 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
Operating cash flow decreased both sequentially and year-over-year, while capital expenditure increased relative to the prior quarter. This combination directly reduced free cash flow and margin.
If operating cash flow does not recover, free cash flow and margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined relative to revenue, while capital expenditure increased, resulting in a lower free cash flow margin compared to both the prior quarter and the year-ago period.
Compared to the preceding quarter, all cash flow metrics weakened: operating cash flow, free cash flow, and margin declined, while capital expenditure rose. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin narrowed, with revenue essentially flat.
Monitor whether operating cash flow can stabilize or improve, as it is the primary driver of free cash flow changes this quarter.