Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the same quarter last year, while free cash flow and free cash flow margin declined in both comparisons. Operating cash flow was lower than the year-ago quarter but also decreased from the preceding quarter.
- Cash conversion, measured as operating cash flow relative to revenue, weakened sequentially and year-over-year. Capital expenditure rose compared to the year-ago quarter but fell from the prior quarter, while free cash flow margin narrowed in both periods.
- Compared to the preceding quarter, revenue increased while operating cash flow decreased, leading to a wider gap between revenue and cash conversion. Versus the same quarter one year earlier, revenue grew but operating cash flow dropped substantially, and free cash flow margin showed a steeper decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$338.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$206.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$876.4M
Cash generated by operations before capital spending.
CapEx
$669.8M
Capital spending and related asset purchases.
FCF margin
4.5%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $2.7B | $676.8M | $598.0M | $78.8M | 2.9% |
| 2023-09-30 | $3.9B | $407.3M | $591.7M | -$184.4M | -4.7% |
| 2023-12-31 | $4.2B | $957.7M | $720.0M | $237.7M | 5.6% |
| 2024-03-31 | $4.6B | $876.4M | $669.8M | $206.6M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure trend
Capital expenditure increased from the year-ago quarter, exerting pressure on free cash flow generation. The sequential decline in capex from the prior quarter partially offset this, but free cash flow still fell in both comparisons due to weaker operating cash flow.
The combination of higher capital expenditure and reduced operating cash flow amplified the drop in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion, measured as operating cash flow relative to revenue, weakened sequentially and year-over-year. Capital expenditure rose compared to the year-ago quarter but fell from the prior quarter, while free cash flow margin narrowed in both periods.
Compared to the preceding quarter, revenue increased while operating cash flow decreased, leading to a wider gap between revenue and cash conversion. Versus the same quarter one year earlier, revenue grew but operating cash flow dropped substantially, and free cash flow margin showed a steeper decline.
Monitor the trajectory of operating cash flow relative to revenue, as it declined in both sequential and year-over-year comparisons despite higher revenue.