Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than the prior quarter but lower than the same quarter last year. The free cash flow margin improved sequentially but weakened year over year.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter but was lower than the year-ago period.
- Compared to the immediately preceding quarter, free cash flow was higher, driven by higher operating cash flow and stable capital expenditure. Compared to the same quarter one year earlier, free cash flow was lower, as operating cash flow was lower despite slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$740.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$854.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$988.9M
Cash generated by operations before capital spending.
CapEx
$134.1M
Capital spending and related asset purchases.
FCF margin
22.5%
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 | $5.6B | $491.0M | $85.6M | $405.4M | 7.2% |
| 2023-09-30 | $8.2B | -$892.2M | $102.4M | -$994.6M | -12.2% |
| 2023-12-31 | $5.8B | $608.4M | $133.7M | $474.6M | 8.2% |
| 2024-03-31 | $3.8B | $988.9M | $134.1M | $854.8M | 22.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1569.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 Variability
Operating cash flow was higher than the prior quarter but lower than the same quarter last year, leading to a mixed free cash flow performance.
The variability in operating cash flow is the primary factor affecting free cash flow, given the relative stability of capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter but was lower than the year-ago period.
Compared to the immediately preceding quarter, free cash flow was higher, driven by higher operating cash flow and stable capital expenditure. Compared to the same quarter one year earlier, free cash flow was lower, as operating cash flow was lower despite slightly higher capital expenditure.
Monitor the trend in operating cash flow relative to revenue, as it has shown variability between quarters.