Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus a year earlier as operating cash flow rose and capital expenditure declined, while revenue was stable. Sequentially, free cash flow and margin weakened due to lower operating cash flow despite reduced capital spending.
- Revenue was flat year over year, but operating cash flow increased and capital expenditure decreased, lifting free cash flow and margin. Sequentially, the decline in operating cash flow outpaced the reduction in capital expenditure, compressing the free cash flow margin.
- Compared with the prior quarter, revenue was lower, operating cash flow was sharply lower, capital expenditure was moderately lower, and free cash flow and margin both weakened. Versus the same quarter one year earlier, revenue was stable, operating cash flow improved, capital expenditure was slightly lower, and free cash flow and margin improved considerably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$377.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$522.0M
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
10.1%
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 | $3.7B | $402.0M | $160.0M | $242.0M | 6.5% |
| 2023-09-30 | $3.7B | $583.0M | $146.0M | $437.0M | 11.7% |
| 2023-12-31 | $3.9B | $747.0M | $179.0M | $568.0M | 14.7% |
| 2024-03-31 | $3.7B | $522.0M | $145.0M | $377.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.1B | 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 improvement
Operating cash flow increased year over year even as revenue was flat, and the gain was large enough to offset a modest reduction in capital expenditure. This was the strongest observable driver behind the free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and margin without requiring a change in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was flat year over year, but operating cash flow increased and capital expenditure decreased, lifting free cash flow and margin. Sequentially, the decline in operating cash flow outpaced the reduction in capital expenditure, compressing the free cash flow margin.
Compared with the prior quarter, revenue was lower, operating cash flow was sharply lower, capital expenditure was moderately lower, and free cash flow and margin both weakened. Versus the same quarter one year earlier, revenue was stable, operating cash flow improved, capital expenditure was slightly lower, and free cash flow and margin improved considerably.
Monitor whether the lower capital expenditure level persists or rebounds, as it supported free cash flow in the current quarter versus a year earlier.