Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially but declined from the prior year period. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago quarter, with free cash flow margin improving from a year ago but weakening sequentially.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin, while positive, was lower than the preceding quarter but higher than the same quarter last year.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, resulting in an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$832.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$144.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$395.0M
Cash generated by operations before capital spending.
CapEx
$251.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 | $4.7B | $528.0M | $267.0M | $261.0M | 5.6% |
| 2023-09-30 | $4.6B | $468.0M | $228.0M | $240.0M | 5.2% |
| 2023-12-31 | $1.7B | $492.0M | $305.0M | $187.0M | 10.9% |
| 2024-03-31 | $3.9B | $395.0M | $251.0M | $144.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 257.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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.
Mill outage spending timing
The filing indicates that the primary driver of the increase in operating cash flow compared to the prior year was the timing of mill outage spending affecting accounts payable and the related drawdown of inventory balances.
This timing effect contributed to the improvement in operating cash flow relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin, while positive, was lower than the preceding quarter but higher than the same quarter last year.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, resulting in an improved margin.
The timing of mill outage spending on accounts payable and inventory balances, as cited in the filing, should be monitored for its impact on future cash flows.