Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2024, PepsiCo reported negative free cash flow and a negative free cash flow margin, driven by operating cash flow that was also negative. Revenue was higher than the same quarter last year but lower than the preceding quarter.
- Revenue was higher than the year-ago quarter, yet operating cash flow turned more negative, leading to a larger negative free cash flow and a weaker free cash flow margin. Capital expenditure was slightly higher than the year-ago quarter but lower than the preceding quarter.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.0B
Cash generated by operations before capital spending.
CapEx
$614.0M
Capital spending and related asset purchases.
FCF margin
-9.1%
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 |
|---|---|---|---|---|---|
| 2023-03-25 | $17.8B | -$392.0M | $581.0M | -$973.0M | -5.5% |
| 2023-06-17 | $22.3B | $2.4B | $932.0M | $1.5B | 6.6% |
| 2023-09-09 | $23.5B | $5.6B | $1.0B | $4.6B | 19.6% |
| 2024-03-23 | $18.3B | -$1.0B | $614.0M | -$1.7B | -9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -81.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Turned Negative
Operating cash flow shifted from positive in the preceding quarter to negative this quarter, and was also more negative than the year-ago quarter. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite capital expenditure being lower than the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter, yet operating cash flow turned more negative, leading to a larger negative free cash flow and a weaker free cash flow margin. Capital expenditure was slightly higher than the year-ago quarter but lower than the preceding quarter.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened significantly. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all worsened.
Monitor the trajectory of operating cash flow, as it turned negative this quarter and was the primary driver of the negative free cash flow.