Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, as operating cash flow declined while capital expenditure increased. Revenue was stable sequentially but lower year-over-year.
- Revenue was unchanged from the prior quarter and lower than a year ago. Operating cash flow decreased relative to both periods, while capital expenditure rose, resulting in a lower free cash flow and a narrower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter last year, all cash flow metrics were lower, with free cash flow margin showing the largest relative weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$737.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$798.2M
Capital spending and related asset purchases.
FCF margin
8.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $9.4B | $2.4B | $595.9M | $1.8B | 19.0% |
| 2024-03-31 | $8.6B | $506.0M | $659.1M | -$153.1M | -1.8% |
| 2024-06-30 | $9.1B | $1.7B | $724.3M | $945.8M | 10.4% |
| 2024-09-29 | $9.1B | $1.5B | $798.2M | $737.4M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | 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 from both the prior quarter and the same quarter last year, while capital expenditure increased. This combination drove free cash flow and margin lower.
The decline in operating cash flow was the strongest observable driver of the quarter's weaker cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and lower than a year ago. Operating cash flow decreased relative to both periods, while capital expenditure rose, resulting in a lower free cash flow and a narrower free cash flow margin.
Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter last year, all cash flow metrics were lower, with free cash flow margin showing the largest relative weakening.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weakened free cash flow generation.