Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter but improved year-over-year. The margin weakened sequentially while strengthening compared to the same period last year.
- Operating cash flow relative to revenue was lower than the prior quarter but higher than a year ago. Capital expenditure increased year-over-year, yet free cash flow still improved due to stronger operating cash flow generation.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and margin were lower. Year-over-year, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$299.0M
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $8.5B | $850.0M | $272.0M | $578.0M | 6.8% |
| 2023-09-30 | $9.0B | $1.2B | $285.0M | $892.0M | 9.9% |
| 2023-12-31 | $9.3B | $1.6B | $332.0M | $1.2B | 13.2% |
| 2024-03-31 | $9.3B | $1.3B | $299.0M | $1.0B | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Improved Year-over-Year Cash Generation
Operating cash flow increased year-over-year, enabling higher free cash flow despite a higher level of capital expenditure.
This improvement provided a stronger foundation for free cash flow compared to the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was lower than the prior quarter but higher than a year ago. Capital expenditure increased year-over-year, yet free cash flow still improved due to stronger operating cash flow generation.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and margin were lower. Year-over-year, all metrics were higher.
The relationship between operating cash flow and capital expenditure should be monitored for any shifts in efficiency.