Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved from the prior quarter but weakened compared to the same quarter last year. The quarter's free cash flow margin was higher than the preceding quarter yet lower than the year-ago period.
- Revenue was higher than the prior quarter, and operating cash flow increased, leading to a higher free cash flow. Capital expenditure was also higher than the prior quarter, but free cash flow margin improved sequentially.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$40.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$277.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$391.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
9.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $2.8B | -$202.0M | $72.0M | -$274.0M | -9.8% |
| 2024-06-30 | $3.0B | -$9.0M | $90.0M | -$99.0M | -3.3% |
| 2024-09-30 | $2.7B | $213.0M | $77.0M | $136.0M | 4.9% |
| 2024-12-31 | $3.0B | $391.0M | $114.0M | $277.0M | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Trade Working Capital Shift
The filing notes that trade working capital decreased cash flow this quarter, contrasting with an increase in the prior comparable period. This was the strongest observable driver of the change in cash conversion.
This shift in working capital was a primary factor in the lower free cash flow compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow increased, leading to a higher free cash flow. Capital expenditure was also higher than the prior quarter, but free cash flow margin improved sequentially.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened.
Monitor the trend in trade working capital, which showed a decrease in cash flow this quarter compared to a positive contribution in the prior quarter.