Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin narrowed as revenue grew modestly.
- Revenue increased slightly from the prior quarter and from a year ago, but operating cash flow declined, resulting in lower free cash flow. Capital expenditure rose, further reducing cash conversion efficiency.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was slightly higher. Versus the same quarter last year, all cash flow metrics weakened, with free cash flow margin declining.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$517.0M
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $19.7B | $1.4B | $318.5M | $1.1B | 5.7% |
| 2023-09-30 | $19.6B | $87.0M | $171.0M | -$84.0M | -0.4% |
| 2023-12-30 | $19.3B | $769.0M | $176.0M | $593.0M | 3.1% |
| 2024-03-30 | $19.4B | $517.0M | $183.0M | $334.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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.
Operating Cash Flow Decline
Operating cash flow decreased from both the prior quarter and the year-ago period, while revenue increased. This divergence is the primary observable factor behind the weaker free cash flow.
Lower operating cash flow directly reduced free cash flow, even as capital expenditure rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from the prior quarter and from a year ago, but operating cash flow declined, resulting in lower free cash flow. Capital expenditure rose, further reducing cash conversion efficiency.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was slightly higher. Versus the same quarter last year, all cash flow metrics weakened, with free cash flow margin declining.
Monitor the trajectory of operating cash flow, as it declined sequentially and year-over-year despite higher revenue.