Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved both sequentially and year-over-year, supported by stable operating cash flow and lower capital expenditure. Revenue was lower than the preceding quarter but higher than a year earlier.
- The company generated strong cash conversion as operating cash flow remained robust while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin relative to both prior periods.
- Compared with the preceding quarter, revenue declined while operating cash flow was stable, and lower capital expenditure boosted free cash flow and margin. Versus the same quarter a year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$105.0M
Capital spending and related asset purchases.
FCF margin
31.6%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $6.6B | $2.3B | $139.0M | $2.2B | 33.3% |
| 2023-09-30 | $7.1B | $1.8B | $122.0M | $1.6B | 23.2% |
| 2023-12-31 | $7.1B | $2.2B | $215.0M | $2.0B | 27.5% |
| 2024-03-31 | $6.7B | $2.2B | $105.0M | $2.1B | 31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -50.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
Free cash flow margin increased sequentially and year-over-year as operating cash flow remained healthy and capital expenditure was reduced.
This improvement indicates enhanced cash generation efficiency relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated strong cash conversion as operating cash flow remained robust while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin relative to both prior periods.
Compared with the preceding quarter, revenue declined while operating cash flow was stable, and lower capital expenditure boosted free cash flow and margin. Versus the same quarter a year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin.
The timing of rebate payments and trends in collections, as highlighted in the filing, warrant attention for future cash flow stability.