Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter last year. Operating cash flow rose significantly, resulting in a positive free cash flow margin that improved from the prior quarter's negative level and was higher than the year-ago quarter.
- Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter. This combination led to a positive free cash flow margin, a marked improvement from the prior quarter's negative margin and an increase from the year-ago margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$683.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$601.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$726.9M
Capital spending and related asset purchases.
FCF margin
13.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $3.9B | $540.9M | $828.8M | -$287.9M | -7.5% |
| 2024-12-31 | $4.4B | $1.3B | $726.9M | $601.0M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.0B | 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 substantially compared to the prior quarter and the year-ago quarter, more than offsetting capital expenditure and driving the free cash flow turnaround.
This was the primary factor behind the improved free cash flow margin and the shift from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter. This combination led to a positive free cash flow margin, a marked improvement from the prior quarter's negative margin and an increase from the year-ago margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was slightly higher, and free cash flow was higher.
Monitor the impact of commodity price movements, hedging activities, and throughput volumes on operating cash flow, as noted in the business overview.