Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while operating cash flow and free cash flow rose, lifting the free cash flow margin. The company's filing indicates it expects to fund its investment and shareholder return programs through operating cash flows.
- Cash conversion improved as operating cash flow grew faster than revenue, and capital expenditure was lower than the prior quarter, resulting in a higher free cash flow margin.
- Compared to the immediate prior quarter, all metrics were higher with the exception of capital expenditure, which was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$542.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$661.0M
Cash generated by operations before capital spending.
CapEx
$119.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $4.2B | $450.0M | $95.0M | $355.0M | 8.5% |
| 2023-09-30 | $4.2B | $523.0M | $125.0M | $398.0M | 9.5% |
| 2023-12-31 | $4.0B | $604.0M | $127.0M | $477.0M | 11.9% |
| 2024-03-31 | $4.2B | $661.0M | $119.0M | $542.0M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$979.0M | 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 growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
This improvement drove the free cash flow margin higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved as operating cash flow grew faster than revenue, and capital expenditure was lower than the prior quarter, resulting in a higher free cash flow margin.
Compared to the immediate prior quarter, all metrics were higher with the exception of capital expenditure, which was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was higher.
Capital expenditure levels relative to the prior quarter and year-ago quarter should be monitored, as changes affect free cash flow.