Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year earlier, but free cash flow and free cash flow margin weakened significantly from both the prior quarter and the same quarter last year. Operating cash flow declined sharply versus both comparison periods, while capital expenditure was higher than a year ago but lower than the preceding quarter.
- Revenue was unchanged year over year, yet operating cash flow fell substantially, leading to a lower free cash flow and a narrower free cash flow margin. The conversion from revenue to cash was weaker than in both the prior quarter and the same quarter last year.
- 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 stable while operating cash flow, free cash flow, and free cash flow margin were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$134.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.0M
Cash generated by operations before capital spending.
CapEx
$153.0M
Capital spending and related asset purchases.
FCF margin
3.4%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $4.0B | $742.0M | $77.0M | $665.0M | 16.6% |
| 2023-10-01 | $3.9B | $674.0M | $114.0M | $560.0M | 14.3% |
| 2023-12-31 | $3.7B | $950.0M | $223.0M | $727.0M | 19.8% |
| 2024-03-31 | $3.9B | $287.0M | $153.0M | $134.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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
Operating cash flow was substantially lower than both the prior quarter and the same quarter last year, while revenue remained relatively stable. This was the strongest observable driver of the weakened free cash flow and margin.
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.
Revenue was unchanged year over year, yet operating cash flow fell substantially, leading to a lower free cash flow and a narrower free cash flow margin. The conversion from revenue to cash was weaker than in both the prior quarter and the same quarter last year.
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 stable while operating cash flow, free cash flow, and free cash flow margin were lower, and capital expenditure was higher.
Monitor the trajectory of operating cash flow, as it declined sharply from both the prior quarter and the year-ago quarter despite stable revenue.