Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year. Operating cash flow declined sequentially but increased year-over-year, while capital expenditure rose in both comparisons, leading to free cash flow that was lower than the prior quarter but higher than a year ago.
- The free cash flow margin weakened from the prior quarter as operating cash flow declined and capital expenditure increased, but improved from the same quarter last year due to higher operating cash flow.
- Compared to the immediately preceding quarter, the company's cash conversion weakened, with lower operating cash flow and higher capital expenditure resulting in lower free cash flow and margin. Versus the same quarter one year earlier, operating cash flow improved, though higher capital expenditure partially offset that gain, leading to a modest improvement in free cash flow and margin.
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
$150.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$293.6M
Cash generated by operations before capital spending.
CapEx
$143.6M
Capital spending and related asset purchases.
FCF margin
2.5%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $5.8B | $625.4M | $144.5M | $480.9M | 8.3% |
| 2023-12-31 | $5.6B | $353.2M | $162.8M | $190.3M | 3.4% |
| 2024-03-31 | $5.8B | $318.3M | $115.7M | $202.6M | 3.5% |
| 2024-06-30 | $6.0B | $293.6M | $143.6M | $150.1M | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Capital Expenditure Increase
Capital expenditure rose from the prior quarter and from the same quarter last year, partly consuming operating cash flow.
Further increases in capital spending could pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin weakened from the prior quarter as operating cash flow declined and capital expenditure increased, but improved from the same quarter last year due to higher operating cash flow.
Compared to the immediately preceding quarter, the company's cash conversion weakened, with lower operating cash flow and higher capital expenditure resulting in lower free cash flow and margin. Versus the same quarter one year earlier, operating cash flow improved, though higher capital expenditure partially offset that gain, leading to a modest improvement in free cash flow and margin.
Monitor the trajectory of capital expenditure, which increased in both sequential and year-over-year comparisons.