Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Motorola Solutions generated positive free cash flow this quarter, a significant improvement from the same quarter last year. However, free cash flow margin declined sequentially from the previous quarter.
- Revenue was higher than the same quarter a year ago, and operating cash flow turned positive from negative, leading to a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago period.
- Compared to the previous quarter, revenue and operating cash flow were lower, resulting in a lower free cash flow and margin. Compared to the same quarter a year earlier, all metrics improved: revenue was higher, operating cash flow was positive, capital expenditure was lower, and free cash flow turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$336.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$382.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $2.4B | $93.0M | $53.0M | $40.0M | 1.7% |
| 2023-09-30 | $2.6B | $714.0M | $65.0M | $649.0M | 25.4% |
| 2023-12-31 | $2.8B | $1.2B | $81.0M | $1.2B | 40.9% |
| 2024-03-30 | $2.4B | $382.0M | $46.0M | $336.0M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -861.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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 recovery
The filing cites higher earnings, improved working capital, and lower income taxes compared to the prior year, along with lower capital expenditures and proceeds from asset sales.
This resulted in positive free cash flow for the current quarter versus a negative free cash flow in the same quarter a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the same quarter a year ago, and operating cash flow turned positive from negative, leading to a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago period.
Compared to the previous quarter, revenue and operating cash flow were lower, resulting in a lower free cash flow and margin. Compared to the same quarter a year earlier, all metrics improved: revenue was higher, operating cash flow was positive, capital expenditure was lower, and free cash flow turned positive from negative.
Monitor the sustainability of operating cash flow given the benefit from a one-time tax payment that did not recur in the current quarter.