Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fourth quarter, the company reported negative free cash flow as capital expenditure exceeded operating cash flow. Revenue and operating cash flow decreased compared to both the prior quarter and the same quarter a year earlier.
- Operating cash flow softened while capital expenditure remained elevated, resulting in a free cash flow deficit and a negative margin. The cash conversion cycle weakened relative to the prior periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow declined and capital expenditure increased, turning free cash flow from positive to negative. Year-over-year, all three metrics deteriorated, with operating cash flow falling more sharply than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$806.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$146.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$733.0M
Cash generated by operations before capital spending.
CapEx
$879.0M
Capital spending and related asset purchases.
FCF margin
-2.1%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $8.1B | $460.0M | $670.0M | -$210.0M | -2.6% |
| 2024-06-29 | $8.1B | $1.5B | $801.0M | $684.0M | 8.5% |
| 2024-09-28 | $7.4B | $1.3B | $823.0M | $478.0M | 6.4% |
| 2024-12-31 | $7.1B | $733.0M | $879.0M | -$146.0M | -2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -50.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.4% | 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 decreased sequentially and year-over-year, while capital expenditure increased, compressing free cash flow.
The combination drove free cash flow from positive to negative, highlighting near-term cash generation pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow softened while capital expenditure remained elevated, resulting in a free cash flow deficit and a negative margin. The cash conversion cycle weakened relative to the prior periods.
Compared to the immediately preceding quarter, revenue and operating cash flow declined and capital expenditure increased, turning free cash flow from positive to negative. Year-over-year, all three metrics deteriorated, with operating cash flow falling more sharply than capital expenditure.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened and turned free cash flow negative.