Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but slightly below the year-ago level. Operating cash flow improved versus both periods, driving a higher free cash flow margin.
- Operating cash flow as a share of revenue strengthened compared to both the prior quarter and the year-ago quarter, while capital expenditure declined. This combination produced a free cash flow margin that was higher than both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$133.9M
Capital spending and related asset purchases.
FCF margin
43.8%
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 | $3.2B | $1.0B | $113.0M | $909.4M | 28.8% |
| 2023-09-30 | $3.4B | $1.1B | $176.0M | $938.3M | 27.9% |
| 2023-12-31 | $3.4B | $1.1B | $251.4M | $838.3M | 24.4% |
| 2024-03-31 | $3.1B | $1.5B | $133.9M | $1.4B | 43.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 Strength
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, even as revenue was lower. This improvement was the primary factor behind the higher free cash flow and margin.
Higher operating cash flow directly supported a stronger free cash flow position and a higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue strengthened compared to both the prior quarter and the year-ago quarter, while capital expenditure declined. This combination produced a free cash flow margin that was higher than both comparison periods.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Versus the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago quarter.