Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved as operating cash flow rose while capital spending declined. Revenue was stable versus the prior year and higher than the previous quarter, with the company noting growth in the Aerospace Systems segment partly offset by lower sales in the Diversified Industrial segment and a negative currency translation effect.
- Revenue was stable year over year and higher sequentially. Operating cash flow increased relative to both the prior quarter and the same quarter last year, while capital expenditure was lower in both comparisons. The resulting free cash flow and free cash flow margin were higher than both prior periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
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
$715.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$795.1M
Cash generated by operations before capital spending.
CapEx
$79.2M
Capital spending and related asset purchases.
FCF margin
14.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $5.1B | $1.2B | $108.4M | $1.1B | 21.1% |
| 2023-09-30 | $4.8B | $650.0M | $97.7M | $552.2M | 11.4% |
| 2023-12-31 | $4.8B | $702.0M | $106.4M | $595.7M | 12.4% |
| 2024-03-31 | $5.1B | $795.1M | $79.2M | $715.9M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, contributing to a higher free cash flow margin despite stable revenue year over year.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year over year and higher sequentially. Operating cash flow increased relative to both the prior quarter and the same quarter last year, while capital expenditure was lower in both comparisons. The resulting free cash flow and free cash flow margin were higher than both prior periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
Monitor capital expenditure levels, as the current quarter's spending was notably lower than both the prior quarter and the year-ago period.