Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow turned positive compared to a year ago but was sharply lower than the preceding quarter.
- Operating cash flow was lower than the prior quarter but improved from a year ago. With capital expenditure higher than last year, free cash flow margin turned positive versus the negative margin a year earlier, though it weakened significantly from the prior quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin weakened. Versus the same quarter last year, operating cash flow and free cash flow improved, and the margin turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$528.0M
Cash generated by operations before capital spending.
CapEx
$370.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $12.0B | $4.5B | $339.0M | $4.1B | 34.5% |
| 2023-09-29 | $12.0B | $4.3B | $386.0M | $3.9B | 32.7% |
| 2023-12-31 | $10.8B | $2.7B | $851.0M | $1.8B | 16.8% |
| 2024-03-29 | $11.3B | $528.0M | $370.0M | $158.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.1B | 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 Volatility
Operating cash flow was significantly lower than the prior quarter, despite higher revenue. This was the strongest observable driver of the decline in free cash flow.
The 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.
Operating cash flow was lower than the prior quarter but improved from a year ago. With capital expenditure higher than last year, free cash flow margin turned positive versus the negative margin a year earlier, though it weakened significantly from the prior quarter.
Compared to the prior quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin weakened. Versus the same quarter last year, operating cash flow and free cash flow improved, and the margin turned from negative to positive.
Monitor the relationship between operating cash flow and capital expenditure, as the gap narrowed this quarter compared to the prior quarter.