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, but operating cash flow declined, resulting in lower free cash flow and a weakened free cash flow margin. Capital expenditure was higher than a year ago but slightly lower than the previous quarter.
- Revenue rose while operating cash flow fell, and capital expenditure remained elevated relative to the year-ago period, causing free cash flow to decline and the free cash flow margin to contract.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$355.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$569.1M
Cash generated by operations before capital spending.
CapEx
$213.3M
Capital spending and related asset purchases.
FCF margin
10.9%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $2.5B | $294.4M | $154.4M | $140.0M | 5.6% |
| 2023-10-01 | $3.0B | $515.7M | $218.1M | $297.6M | 9.8% |
| 2023-12-31 | $2.7B | $757.6M | $222.5M | $535.1M | 20.1% |
| 2024-03-31 | $3.3B | $569.1M | $213.3M | $355.8M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 decline
Revenue increased, but operating cash flow decreased substantially compared to both the prior quarter and the same quarter last year, leading to a lower free cash flow and a weaker free cash flow margin.
The lower free cash flow margin reflects reduced cash generation from each dollar of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, and capital expenditure remained elevated relative to the year-ago period, causing free cash flow to decline and the free cash flow margin to contract.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor operating cash flow trends, as it declined despite higher revenue and remained below both the prior quarter and the year-ago level.