Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply compared with both the prior quarter and the same quarter a year earlier. Operating cash flow rose while revenue declined, driving the margin gain.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow increased, resulting in higher free cash flow and an improved free cash flow margin.
- Compared with the preceding quarter, revenue decreased while operating cash flow and free cash flow were higher; free cash flow margin rose from the prior period. Versus the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$425.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$204.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$248.8M
Cash generated by operations before capital spending.
CapEx
$44.3M
Capital spending and related asset purchases.
FCF margin
30.5%
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 |
|---|---|---|---|---|---|
| 2023-04-02 | $617.5M | $19.3M | $41.4M | -$22.1M | -3.6% |
| 2023-07-02 | $684.4M | $142.8M | $39.3M | $103.5M | 15.1% |
| 2023-10-01 | $703.7M | $174.3M | $34.6M | $139.7M | 19.9% |
| 2023-12-31 | $670.6M | $248.8M | $44.3M | $204.4M | 30.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Operating cash flow strength
Operating cash flow rose versus both the prior quarter and the year-ago quarter, even as revenue declined. This was the strongest observable driver of the improvement in free cash flow and free cash flow margin.
Higher operating cash flow directly increased free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow increased, resulting in higher free cash flow and an improved free cash flow margin.
Compared with the preceding quarter, revenue decreased while operating cash flow and free cash flow were higher; free cash flow margin rose from the prior period. Versus the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Capital expenditure was higher sequentially and year-over-year; its trend could affect future free cash flow if spending continues to rise.