Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially compared to both the prior quarter and the same quarter last year, driven by a significant increase in operating cash flow while revenue grew modestly. The company's filing notes its historical reliance on cash from operations for liquidity needs.
- Operating cash flow was markedly higher sequentially and year-over-year, while capital expenditure remained a minor use of cash. Consequently, free cash flow margin was substantially improved relative to both comparable periods.
- Compared to the prior quarter, free cash flow was much higher due to a sharp rise in operating cash flow and a slight decrease in capital expenditure. Versus the prior year quarter, free cash flow also improved significantly, supported by stronger operating cash flow despite a small increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
144.7%
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 | $943.0M | $226.0M | $4.0M | $222.0M | 23.5% |
| 2023-09-29 | $945.0M | $125.0M | $5.0M | $120.0M | 12.7% |
| 2023-12-29 | $948.0M | $315.0M | $8.0M | $307.0M | 32.4% |
| 2024-03-29 | $964.0M | $1.4B | $3.0M | $1.4B | 144.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1064.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | 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 Strength
Operating cash flow was the primary driver of the free cash flow improvement, as it surged compared to both the prior quarter and the year-ago quarter. Revenue showed only modest growth, highlighting the outsized contribution from operating cash flow.
This strength resulted in a free cash flow margin that was well above levels seen in the prior and year-ago quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was markedly higher sequentially and year-over-year, while capital expenditure remained a minor use of cash. Consequently, free cash flow margin was substantially improved relative to both comparable periods.
Compared to the prior quarter, free cash flow was much higher due to a sharp rise in operating cash flow and a slight decrease in capital expenditure. Versus the prior year quarter, free cash flow also improved significantly, supported by stronger operating cash flow despite a small increase in capital expenditure.
Monitor whether operating cash flow remains at elevated levels in future quarters.