Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin were lower than the prior quarter and the same quarter last year. Operating cash flow decreased while revenue remained stable, resulting in a cash conversion decline.
- Revenue was about the same as the prior quarter and the year-ago quarter, but operating cash flow was lower, which drove free cash flow and free cash flow margin lower than both comparable periods.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was also lower. Compared to the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were also lower, with capital expenditure lower as well.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$494.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$589.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $4.1B | $790.0M | $85.0M | $705.0M | 17.3% |
| 2023-09-30 | $4.0B | $982.0M | $126.0M | $856.0M | 21.2% |
| 2023-12-31 | $4.0B | $1.0B | $131.0M | $908.0M | 22.8% |
| 2024-03-31 | $4.0B | $589.0M | $95.0M | $494.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 Decrease
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while revenue was largely unchanged. This decline was the strongest observable driver of the reduced free cash flow and free cash flow margin.
Lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was about the same as the prior quarter and the year-ago quarter, but operating cash flow was lower, which drove free cash flow and free cash flow margin lower than both comparable periods.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was also lower. Compared to the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were also lower, with capital expenditure lower as well.
Monitor whether operating cash flow recovers toward prior levels, as it was the primary factor behind the weakened free cash flow.