Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year over year, driven by higher operating cash flow despite increased capital spending. Sequentially, free cash flow decreased as capital expenditure rose faster than operating cash flow.
- Operating cash flow as a percentage of revenue improved sequentially, while free cash flow margin remained relatively stable. The conversion from revenue to free cash flow was supported by operating cash flow growth.
- Compared to the previous quarter, revenue was lower but operating cash flow was slightly higher, leading to a similar free cash flow margin. Compared to the same quarter last year, all key metrics increased, with free cash flow significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$424.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$904.5M
Cash generated by operations before capital spending.
CapEx
$740.3M
Capital spending and related asset purchases.
FCF margin
4.6%
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 | $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% |
| 2024-06-30 | $3.6B | $904.5M | $740.3M | $164.2M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.4B | 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 increased year over year, more than offsetting higher capital expenditure. This resulted in stronger free cash flow despite the increased investment.
The improvement in operating cash flow was the primary factor behind the year-over-year increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved sequentially, while free cash flow margin remained relatively stable. The conversion from revenue to free cash flow was supported by operating cash flow growth.
Compared to the previous quarter, revenue was lower but operating cash flow was slightly higher, leading to a similar free cash flow margin. Compared to the same quarter last year, all key metrics increased, with free cash flow significantly higher.
Capital expenditure as it represents a substantial use of cash and impacts free cash flow generation.