Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower than the prior quarter and the same quarter last year. Operating cash flow decreased while capital expenditure increased.
- Revenue was lower than both prior periods, and operating cash flow decreased more than the decline in revenue, leading to a lower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow weakened and the margin narrowed. Compared to the same quarter one year earlier, free cash flow was also lower and the margin was below the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$523.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$73.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$87.6M
Cash generated by operations before capital spending.
CapEx
$14.3M
Capital spending and related asset purchases.
FCF margin
8.4%
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 |
|---|---|---|---|---|---|
| 2023-09-29 | $957.3M | $147.1M | $13.2M | $133.9M | 14.0% |
| 2023-12-29 | $932.4M | $98.9M | $9.8M | $89.1M | 9.6% |
| 2024-03-29 | $953.3M | $233.8M | $6.8M | $227.0M | 23.8% |
| 2024-06-28 | $870.8M | $87.6M | $14.3M | $73.3M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Free cash flow margin decline
The free cash flow margin weakened compared to both the prior quarter and the year-ago quarter, as operating cash flow fell more sharply than revenue while capital expenditure rose.
This reduced cash conversion efficiency for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both prior periods, and operating cash flow decreased more than the decline in revenue, leading to a lower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow weakened and the margin narrowed. Compared to the same quarter one year earlier, free cash flow was also lower and the margin was below the year-ago level.
Monitor the trajectory of operating cash flow, especially given the divestiture impact and higher tax and interest payments noted in the filing.