Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the third quarter of fiscal 2024, the company generated substantially higher revenue and operating cash flow compared to both the prior quarter and the same quarter a year ago. Free cash flow and the corresponding margin improved markedly as a result.
- Operating cash flow increased relative to the prior quarter and the year-ago quarter, while capital expenditure remained broadly stable. This drove a strong conversion of revenue into free cash flow, with the free cash flow margin rising to a level above the two comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was little changed. Versus the same quarter one year earlier, revenue increased, operating cash flow strengthened, and free cash flow rose, supported by a similar capital expenditure profile.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$584.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$183.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$212.3M
Cash generated by operations before capital spending.
CapEx
$28.6M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $1.1B | $316.9M | $51.3M | $265.6M | 25.0% |
| 2024-03-31 | $889.3M | $111.9M | $26.8M | $85.1M | 9.6% |
| 2024-06-30 | $998.2M | $77.7M | $28.0M | $49.7M | 5.0% |
| 2024-09-30 | $1.2B | $212.3M | $28.6M | $183.7M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow growth
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, providing the primary impetus for the increase in free cash flow. This improvement occurred even with capital expenditure remaining at a similar level.
The free cash flow margin expanded substantially, reflecting the leverage of higher operating cash flow on free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter and the year-ago quarter, while capital expenditure remained broadly stable. This drove a strong conversion of revenue into free cash flow, with the free cash flow margin rising to a level above the two comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was little changed. Versus the same quarter one year earlier, revenue increased, operating cash flow strengthened, and free cash flow rose, supported by a similar capital expenditure profile.
Monitor the trend in accounts receivable and inventory levels, as changes in these working capital items can influence operating cash flow in coming periods.