Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter and the year-ago period, supported by higher operating cash flow that outpaced a rise in capital expenditure. The free cash flow margin also improved compared with both periods.
- Revenue grew from the prior quarter, while operating cash flow rose more sharply, leading to a higher free cash flow after capital expenditure. The free cash flow margin widened as a result of the stronger operating cash flow relative to revenue.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both increased, and capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow also improved, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$302.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-29 | $20.6B | $1.6B | $302.0M | $1.3B | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Free Cash Flow Margin Improvement
The free cash flow margin increased from the prior quarter and from the year-ago quarter, driven by a stronger operating cash flow relative to revenue. The filing notes customer credit management, inventory levels, and supplier payment terms that support cash generation.
Sustained margin improvement could enhance financial flexibility for future investments or debt reduction.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew from the prior quarter, while operating cash flow rose more sharply, leading to a higher free cash flow after capital expenditure. The free cash flow margin widened as a result of the stronger operating cash flow relative to revenue.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both increased, and capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow also improved, while capital expenditure was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from the prior quarter and the filing describes inventory management and supplier payment practices that influence cash conversion.