Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative, reflecting operating cash flow that was lower than capital expenditure. Compared to the prior quarter, free cash flow weakened significantly, but it improved relative to the same quarter last year.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow was substantially lower than the prior quarter, though higher than the year-ago period. Capital expenditure increased from both comparison periods. As a result, free cash flow turned negative, and the free cash flow margin was negative, representing an improvement from the year-ago negative margin but a decline from the prior quarter's positive margin.
- Compared to the immediately preceding quarter, free cash flow and operating cash flow were lower, while capital expenditure was higher. Relative to the same quarter one year earlier, free cash flow and operating cash flow were higher, and capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$176.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.0M
Cash generated by operations before capital spending.
CapEx
$417.0M
Capital spending and related asset purchases.
FCF margin
-2.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $9.0B | $3.4B | $360.0M | $3.1B | 34.4% |
| 2023-09-30 | $9.1B | $3.4B | $371.0M | $3.0B | 33.3% |
| 2023-12-31 | $9.0B | $3.3B | $311.0M | $3.0B | 33.1% |
| 2024-03-31 | $8.8B | $241.0M | $417.0M | -$176.0M | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 decline
Operating cash flow decreased sharply from the prior quarter, while capital expenditure increased, leading to negative free cash flow.
The lower operating cash flow was the primary factor behind the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow was substantially lower than the prior quarter, though higher than the year-ago period. Capital expenditure increased from both comparison periods. As a result, free cash flow turned negative, and the free cash flow margin was negative, representing an improvement from the year-ago negative margin but a decline from the prior quarter's positive margin.
Compared to the immediately preceding quarter, free cash flow and operating cash flow were lower, while capital expenditure was higher. Relative to the same quarter one year earlier, free cash flow and operating cash flow were higher, and capital expenditure was also higher.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's operating cash flow did not cover capital spending.