Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow and free cash flow margin improved from a year ago but weakened sharply from the preceding quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but modest. Capital expenditure consumed a significant portion of operating cash flow, leaving free cash flow well below operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was slightly lower, free cash flow was higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$386.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$704.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 | $13.0B | -$1.2B | $914.0M | -$2.1B | -16.3% |
| 2023-10-01 | $13.5B | $3.5B | $810.0M | $2.6B | 19.6% |
| 2023-12-31 | $14.6B | $5.2B | $1.0B | $4.2B | 28.8% |
| 2024-03-31 | $14.9B | $1.1B | $704.0M | $386.0M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$68.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue decline from prior year
Revenue was lower than the same quarter last year, with the filing noting the decrease was primarily driven by declines in certain products. This was the strongest observable driver of the year-over-year change in cash generation.
Lower revenue compared to the prior year reduced the base from which operating cash flow was generated.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but modest. Capital expenditure consumed a significant portion of operating cash flow, leaving free cash flow well below operating cash flow.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow was slightly lower, free cash flow was higher, and free cash flow margin improved.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure remained elevated relative to operating cash flow.