Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter, leading to a free cash outflow. Compared to the same quarter last year, the cash flow profile improved significantly from a large negative figure.
- Operating cash flow fell sharply relative to revenue, and capital expenditure rose, resulting in a free cash outflow and a negative free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter last year, operating cash flow and free cash flow improved from deeply negative levels, though capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$153.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$506.0M
Cash generated by operations before capital spending.
CapEx
$659.1M
Capital spending and related asset purchases.
FCF margin
-1.8%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $9.2B | $6.4B | $632.1M | $5.8B | 63.2% |
| 2023-10-01 | $9.4B | $1.9B | $699.5M | $1.2B | 13.3% |
| 2023-12-31 | $9.4B | $2.4B | $595.9M | $1.8B | 19.0% |
| 2024-03-31 | $8.6B | $506.0M | $659.1M | -$153.1M | -1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -19.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | 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 dropped significantly from the prior quarter, contracting more than revenue. This was the strongest observable driver of the free cash flow swing.
The lower operating cash flow was the primary factor behind the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell sharply relative to revenue, and capital expenditure rose, resulting in a free cash outflow and a negative free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned negative. Versus the same quarter last year, operating cash flow and free cash flow improved from deeply negative levels, though capital expenditure was higher.
Monitor operating cash flow relative to revenue, as the conversion rate weakened substantially from the prior quarter.