Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable both sequentially and year-over-year. Operating cash flow improved markedly, leading to a higher free cash flow margin.
- With revenue unchanged, a higher operating cash flow combined with lower capital expenditure resulted in a stronger free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, operating cash flow was higher, capital expenditure was lower, and free cash flow improved. The same pattern held when compared to the same quarter a year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$817.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$275.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$291.0M
Cash generated by operations before capital spending.
CapEx
$15.9M
Capital spending and related asset purchases.
FCF margin
20.4%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $1.4B | $190.5M | $27.3M | $163.2M | 11.5% |
| 2023-10-01 | $1.4B | $278.2M | $23.0M | $255.2M | 18.2% |
| 2023-12-31 | $1.4B | $164.4M | $40.2M | $124.2M | 8.7% |
| 2024-03-31 | $1.4B | $291.0M | $15.9M | $275.1M | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower in both comparisons.
This combination drove an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a higher operating cash flow combined with lower capital expenditure resulted in a stronger free cash flow and an improved free cash flow margin.
Compared to the prior quarter, operating cash flow was higher, capital expenditure was lower, and free cash flow improved. The same pattern held when compared to the same quarter a year earlier.
Monitor the impact of the subsequent debt maturity payment on the company's cash and liquidity position.