Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the previous quarter and the same quarter last year. Free cash flow turned negative, driven by negative operating cash flow despite capital expenditure remaining elevated.
- Revenue generation did not convert into positive operating cash flow, resulting in a negative free cash flow margin. The gap between operating cash flow and capital expenditure widened significantly.
- Compared to the previous quarter, revenue was lower and operating cash flow turned from positive to negative, causing free cash flow to shift from a large surplus to a deficit. Versus the same quarter last year, revenue and free cash flow were lower, while operating cash flow weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$597.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$114.0M
Cash generated by operations before capital spending.
CapEx
$483.0M
Capital spending and related asset purchases.
FCF margin
-7.2%
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 | $10.3B | $1.3B | $301.0M | $989.0M | 9.6% |
| 2023-09-30 | $10.6B | $1.7B | $394.0M | $1.3B | 12.0% |
| 2023-12-31 | $2.2B | $1.5B | $484.0M | $1.0B | 47.3% |
| 2024-03-31 | $8.3B | -$114.0M | $483.0M | -$597.0M | -7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -126.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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 turned negative this quarter, a sharp reversal from positive figures in both the prior quarter and year-ago period.
This was the primary factor behind the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generation did not convert into positive operating cash flow, resulting in a negative free cash flow margin. The gap between operating cash flow and capital expenditure widened significantly.
Compared to the previous quarter, revenue was lower and operating cash flow turned from positive to negative, causing free cash flow to shift from a large surplus to a deficit. Versus the same quarter last year, revenue and free cash flow were lower, while operating cash flow weakened from positive to negative.
Monitor whether operating cash flow can return to positive levels in the coming quarters.