Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the same quarter last year. Operating cash flow rose, resulting in an improved free cash flow margin.
- Higher revenue combined with operating cash flow that exceeded capital expenditure produced a free cash flow that represented a strong portion of revenue. The free cash flow margin reflected this efficient conversion.
- Compared to the prior quarter, both revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in a much improved free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were also higher, capital expenditure was slightly higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$568.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$608.0M
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
27.8%
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 | $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% |
| 2024-06-29 | $2.0B | $608.0M | $40.0M | $568.0M | 27.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.1B | 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 growth
Operating cash flow rose compared to both the prior quarter and the same quarter last year, while revenue also increased. This combination drove a higher free cash flow margin.
The improved cash conversion strengthens the company's ability to fund operations and investments internally.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Higher revenue combined with operating cash flow that exceeded capital expenditure produced a free cash flow that represented a strong portion of revenue. The free cash flow margin reflected this efficient conversion.
Compared to the prior quarter, both revenue and operating cash flow were higher, while capital expenditure was slightly lower, resulting in a much improved free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were also higher, capital expenditure was slightly higher, and the free cash flow margin improved.
Monitor trade accounts receivable levels, which have increased from the prior fiscal year-end according to the balance sheet.