Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from the prior quarter but fell from a year ago, while operating cash flow and free cash flow declined sharply. The company posted negative free cash flow as operating cash flow was insufficient to cover capital expenditure.
- Operating cash flow was lower than capital expenditure, resulting in a negative free cash flow margin. Compared with both the prior quarter and the same quarter last year, cash conversion weakened significantly.
- Revenue increased from the prior quarter but decreased from a year ago. Operating cash flow, capital expenditure, and free cash flow all moved lower versus the prior quarter; compared with the same quarter last year, operating cash flow and free cash flow were lower while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$19.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$355.2M
Cash generated by operations before capital spending.
CapEx
$374.3M
Capital spending and related asset purchases.
FCF margin
-0.4%
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 | $5.1B | $807.8M | $358.3M | $449.5M | 8.8% |
| 2023-09-30 | $4.6B | $1.1B | $558.4M | $555.3M | 12.1% |
| 2023-12-31 | $4.2B | $864.6M | $514.9M | $349.7M | 8.3% |
| 2024-03-31 | $4.7B | $355.2M | $374.3M | -$19.1M | -0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 was lower than both the prior quarter and the same quarter last year, while capital expenditure remained elevated, leading to negative free cash flow.
The company's ability to generate positive free cash flow depends on a recovery in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in a negative free cash flow margin. Compared with both the prior quarter and the same quarter last year, cash conversion weakened significantly.
Revenue increased from the prior quarter but decreased from a year ago. Operating cash flow, capital expenditure, and free cash flow all moved lower versus the prior quarter; compared with the same quarter last year, operating cash flow and free cash flow were lower while capital expenditure was higher.
Monitor the level of capital expenditure relative to operating cash flow, as the company's liquidity discussion notes ongoing expansion projects that require substantial outlays.