Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by a sharp rise in operating cash flow and a reduction in capital spending. Compared to the same quarter last year, free cash flow was slightly higher despite lower revenue, as capital expenditure fell.
- Revenue was flat compared to the prior quarter but lower than a year ago. Operating cash flow increased sharply from the prior quarter and was similar to the prior-year level, while capital expenditure declined substantially from both periods. Consequently, free cash flow and free cash flow margin improved markedly from the prior quarter and were higher than a year ago.
- Compared to the prior quarter, revenue was unchanged, operating cash flow was higher, and capital expenditure was lower, resulting in a much higher free cash flow and margin. Versus the year-ago quarter, revenue was lower, but operating cash flow was similar, capital expenditure was lower, and free cash flow was slightly higher with a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$752.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$774.9M
Cash generated by operations before capital spending.
CapEx
$22.2M
Capital spending and related asset purchases.
FCF margin
62.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $1.2B | $411.7M | $45.4M | $366.3M | 31.8% |
| 2023-06-30 | $1.1B | $305.8M | $31.3M | $274.5M | 25.6% |
| 2023-09-29 | $1.2B | $365.5M | $70.1M | $295.4M | 24.2% |
| 2023-12-29 | $1.2B | $774.9M | $22.2M | $752.7M | 62.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 325.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $36.5M | 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 Recovery
Operating cash flow rebounded sharply from the prior quarter, reaching a level similar to the year-ago period, while capital expenditure dropped. The filing attributes the increase in operating cash flow primarily to favorable working capital changes, partially offset by lower net income.
This combination drove a substantial improvement in free cash flow and free cash flow margin compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was flat compared to the prior quarter but lower than a year ago. Operating cash flow increased sharply from the prior quarter and was similar to the prior-year level, while capital expenditure declined substantially from both periods. Consequently, free cash flow and free cash flow margin improved markedly from the prior quarter and were higher than a year ago.
Compared to the prior quarter, revenue was unchanged, operating cash flow was higher, and capital expenditure was lower, resulting in a much higher free cash flow and margin. Versus the year-ago quarter, revenue was lower, but operating cash flow was similar, capital expenditure was lower, and free cash flow was slightly higher with a stronger margin.
Monitor changes in working capital, particularly inventory levels, as the filing indicates favorable working capital movements contributed to operating cash flow.