Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved compared to the same quarter last year but weakened sequentially from the prior quarter. The sequential decline was driven by a lower operating cash flow despite higher revenue.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was slightly higher than both periods. As a result, free cash flow and margin were lower sequentially but higher year-over-year.
- Compared to the immediately preceding quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow and margin were higher.
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
$181.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$229.0M
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
9.4%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $1.7B | $406.0M | $36.0M | $370.0M | 21.2% |
| 2023-09-30 | $1.9B | $462.0M | $37.0M | $425.0M | 22.9% |
| 2023-12-30 | $1.8B | $636.0M | $36.0M | $600.0M | 33.5% |
| 2024-03-30 | $1.9B | $229.0M | $48.0M | $181.0M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.7B | 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 the prior quarter even as revenue grew, causing a significant drop in free cash flow margin.
This sequential weakening in cash generation warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was slightly higher than both periods. As a result, free cash flow and margin were lower sequentially but higher year-over-year.
Compared to the immediately preceding quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow and margin were higher.
Monitor changes in working capital, as trade receivables and inventories increased from the fiscal year-end.