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 higher than the same quarter last year. Free cash flow was negative, though the deficit narrowed compared to a year ago.
- Operating cash flow was significantly lower than the prior quarter and roughly flat versus the same quarter last year. Capital expenditure decreased from both comparison periods, yet free cash flow turned negative from a large positive in the prior quarter, while the free cash flow margin weakened sequentially but improved slightly year over year.
- Compared to the prior quarter, revenue was lower, operating cash flow was sharply lower, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was higher, operating cash flow was stable, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$72.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$327.0M
Cash generated by operations before capital spending.
CapEx
$399.0M
Capital spending and related asset purchases.
FCF margin
-0.8%
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 | $8.1B | $1.6B | $471.0M | $1.1B | 14.0% |
| 2023-09-30 | $8.3B | $1.7B | $464.0M | $1.2B | 14.6% |
| 2023-12-31 | $9.0B | $3.0B | $594.0M | $2.4B | 27.0% |
| 2024-03-31 | $8.7B | $327.0M | $399.0M | -$72.0M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Working Capital Impact
The increase in working capital was the strongest observable driver of the cash flow change, consuming a significant portion of cash from operations. This contrasts with the prior quarter where working capital likely had a different effect.
The large working capital build 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.
Operating cash flow was significantly lower than the prior quarter and roughly flat versus the same quarter last year. Capital expenditure decreased from both comparison periods, yet free cash flow turned negative from a large positive in the prior quarter, while the free cash flow margin weakened sequentially but improved slightly year over year.
Compared to the prior quarter, revenue was lower, operating cash flow was sharply lower, and free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was higher, operating cash flow was stable, and free cash flow was less negative.
Monitor the magnitude of working capital changes, as the increase in working capital was a substantial use of cash in the current quarter.