Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined compared to the prior quarter and the same quarter last year, resulting in a lower free cash flow margin. Capital expenditure was relatively stable, but the drop in cash conversion reduced free cash flow.
- Revenue was lower than both the preceding quarter and the year-ago quarter, while operating cash flow decreased more than proportionally. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago period, and free cash flow and its margin both weakened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin narrowed significantly. Versus the same quarter one year earlier, the same metrics were lower, though the margin decline was less pronounced relative to the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$272.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$300.3M
Cash generated by operations before capital spending.
CapEx
$27.6M
Capital spending and related asset purchases.
FCF margin
26.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $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% |
| 2024-03-29 | $1.0B | $300.3M | $27.6M | $272.7M | 26.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $211.8M | 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
The filing context indicates that the decrease in operating cash flow was primarily due to lower net income and depreciation, partially offset by favorable changes in working capital, particularly a decrease in inventory.
The lower operating cash flow drove a sharp reduction in free cash flow and a weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the preceding quarter and the year-ago quarter, while operating cash flow decreased more than proportionally. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago period, and free cash flow and its margin both weakened.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin narrowed significantly. Versus the same quarter one year earlier, the same metrics were lower, though the margin decline was less pronounced relative to the year-ago period.
Monitor the trajectory of operating cash flow given the sharp decline from the preceding quarter and the year-ago period.