Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior quarter and the same quarter last year. Free cash flow remained negative due to capital expenditure exceeding operating cash flow, resulting in a weakened free cash flow margin.
- Operating cash flow was higher than capital expenditure, but the gap was not enough to generate positive free cash flow. The free cash flow margin turned negative, reflecting the cash conversion was less efficient compared to the same quarter last year.
- Revenue and operating cash flow were lower than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow worsened from a positive position a year ago to a negative figure in the current quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$849.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$36.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$382.6M
Cash generated by operations before capital spending.
CapEx
$419.2M
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $4.6B | $382.6M | $419.2M | -$36.6M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Exceeds Operating Cash Flow
Capital expenditure was higher than operating cash flow in the current quarter, a shift from the same quarter last year when operating cash flow comfortably covered capital spending. This change directly caused free cash flow to turn negative.
The cash conversion from operations was insufficient to fund the capital investment program, resulting in negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, but the gap was not enough to generate positive free cash flow. The free cash flow margin turned negative, reflecting the cash conversion was less efficient compared to the same quarter last year.
Revenue and operating cash flow were lower than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow worsened from a positive position a year ago to a negative figure in the current quarter.
Monitor the level of capital expenditure relative to operating cash flow, as it continued to exceed operating cash flow and drove the negative free cash flow.