Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative, driven by a sizable operating cash outflow despite lower capital spending. The result worsened compared to both the prior quarter and the same quarter a year earlier.
- Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow turned negative, while capital expenditure declined, resulting in a more negative free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow both decreased, while capital expenditure was lower, leading to a larger free cash flow deficit. Versus the year-ago quarter, revenue increased but operating cash flow switched from positive to negative, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$705.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$687.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$104.0M
Cash generated by operations before capital spending.
CapEx
$583.0M
Capital spending and related asset purchases.
FCF margin
-10.9%
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 | $7.0B | $1.4B | $925.0M | $491.0M | 7.0% |
| 2023-09-30 | $6.5B | $616.0M | $842.0M | -$226.0M | -3.5% |
| 2023-12-31 | $6.8B | $425.0M | $708.0M | -$283.0M | -4.1% |
| 2024-03-31 | $6.3B | -$104.0M | $583.0M | -$687.0M | -10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 297.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | 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 pressure
Operating cash flow turned negative, the primary factor behind the free cash flow shortfall, while capital expenditure declined from both prior periods. The filing attributes the cash outflow to significant one-time items.
Free cash flow margin remained negative and widened, largely due to the operating cash flow weakness.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow turned negative, while capital expenditure declined, resulting in a more negative free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow both decreased, while capital expenditure was lower, leading to a larger free cash flow deficit. Versus the year-ago quarter, revenue increased but operating cash flow switched from positive to negative, and free cash flow margin weakened.
Monitor the trajectory of operating cash flow, as the filing notes that the current period was impacted by outflows including contract ratification bonuses and profit sharing payments.