Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved year-over-year as operating cash flow rose on stable revenue. Sequentially, the margin weakened due to lower revenue and operating cash flow, along with higher capital expenditure.
- Revenue was stable compared to the same quarter last year, while operating cash flow improved, resulting in higher free cash flow and a stronger margin. Capital expenditure was lower than the prior year quarter but higher than the preceding quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower, leading to a reduced margin. Relative to the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow were higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$625.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$851.0M
Cash generated by operations before capital spending.
CapEx
$226.0M
Capital spending and related asset purchases.
FCF margin
20.0%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $3.3B | $756.0M | $201.0M | $555.0M | 16.8% |
| 2023-10-01 | $3.4B | $988.0M | $200.0M | $788.0M | 22.9% |
| 2023-12-31 | $3.4B | $1.1B | $175.0M | $962.0M | 28.1% |
| 2024-03-31 | $3.1B | $851.0M | $226.0M | $625.0M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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.
Operating Cash Flow Improvement
The company generated higher operating cash flow compared to the same quarter last year while revenue remained stable, leading to a higher free cash flow and margin.
This strengthened the company's free cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter last year, while operating cash flow improved, resulting in higher free cash flow and a stronger margin. Capital expenditure was lower than the prior year quarter but higher than the preceding quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower, leading to a reduced margin. Relative to the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow were higher, with an improved margin.
Monitor the trajectory of capital expenditure, which increased from the prior quarter, and the cash balance trend following the debt retirement mentioned in the filing.