Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter last year but weakened sequentially. Revenue was higher than the prior quarter and lower than the year-ago period, while operating cash flow increased year over year and decreased slightly from the previous quarter.
- Cash conversion, as measured by free cash flow margin, strengthened year over year due to higher operating cash flow and lower capital expenditure despite lower revenue. Sequentially, the margin weakened as operating cash flow declined even though revenue increased.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$543.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$710.0M
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
13.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $4.0B | $779.0M | $166.0M | $613.0M | 15.3% |
| 2023-09-29 | $4.0B | $1.1B | $194.0M | $944.0M | 23.4% |
| 2023-12-29 | $3.8B | $719.0M | $151.0M | $568.0M | 14.8% |
| 2024-03-29 | $4.0B | $710.0M | $167.0M | $543.0M | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow margin expansion
Free cash flow margin increased from the year-ago quarter, supported by a higher operating cash flow and a lower capital expenditure.
This indicates improved efficiency in converting revenue into free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion, as measured by free cash flow margin, strengthened year over year due to higher operating cash flow and lower capital expenditure despite lower revenue. Sequentially, the margin weakened as operating cash flow declined even though revenue increased.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, while revenue was lower.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite revenue growth.