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 versus both the prior quarter and the year-ago quarter. The increase was driven by higher operating cash flow with stable capital spending.
- Revenue was stable compared to the same quarter last year and lower than the prior quarter. Higher operating cash flow and slightly lower capital expenditure resulted in improved free cash flow and margin.
- Compared to the prior quarter, revenue was lower, but operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, revenue was stable while cash flow metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$535.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$259.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$296.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $3.2B | $231.0M | $40.0M | $191.0M | 6.0% |
| 2023-12-30 | $3.0B | -$32.0M | $39.0M | -$71.0M | -2.4% |
| 2024-03-30 | $3.2B | $197.0M | $41.0M | $156.0M | 4.9% |
| 2024-06-29 | $3.1B | $296.0M | $37.0M | $259.0M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 249.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Operating Cash Flow Strength
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, while capital expenditure remained nearly unchanged.
This improvement was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter last year and lower than the prior quarter. Higher operating cash flow and slightly lower capital expenditure resulted in improved free cash flow and margin.
Compared to the prior quarter, revenue was lower, but operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, revenue was stable while cash flow metrics were higher.
The filing indicates that working capital requirements can be influenced by sales and inventory purchasing; changes in these areas may affect future cash conversion.