Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved year over year, while capital expenditure declined from both the prior quarter and the same period last year, resulting in free cash flow margin expansion. Revenue was slightly lower sequentially and year over year, but the cash conversion efficiency strengthened.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow increased from a year ago but decreased from the prior quarter. Capital expenditure was reduced compared to both periods, leading to free cash flow that was higher year over year and roughly stable sequentially, with free cash flow margin improving against both benchmarks.
- Compared with the immediately preceding quarter, revenue and operating cash flow were lower, but capital expenditure was also lower, keeping free cash flow similar and the margin modestly higher. Versus the same quarter one year earlier, revenue was lower, yet operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were substantially improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$615.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$264.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$498.7M
Cash generated by operations before capital spending.
CapEx
$233.9M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $2.1B | $390.8M | $430.6M | -$39.8M | -1.9% |
| 2023-09-29 | $2.2B | $566.6M | $433.0M | $133.6M | 6.1% |
| 2023-12-31 | $2.0B | $611.2M | $354.0M | $257.2M | 12.7% |
| 2024-03-29 | $1.9B | $498.7M | $233.9M | $264.8M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$765.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower than both the prior quarter and the same quarter last year, supporting higher free cash flow despite lower revenue. The reduction in capital spending contributed to the improvement in free cash flow margin.
The lower capital expenditure directly boosted free cash flow and margin, even as revenue declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow increased from a year ago but decreased from the prior quarter. Capital expenditure was reduced compared to both periods, leading to free cash flow that was higher year over year and roughly stable sequentially, with free cash flow margin improving against both benchmarks.
Compared with the immediately preceding quarter, revenue and operating cash flow were lower, but capital expenditure was also lower, keeping free cash flow similar and the margin modestly higher. Versus the same quarter one year earlier, revenue was lower, yet operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were substantially improved.
Monitor capital expenditure levels, as the filing notes that such spending is primarily directed toward manufacturing equipment and can materially influence available cash.