Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned negative as operating cash flow was outweighed by capital expenditure, despite revenue remaining stable. Cash conversion weakened sharply compared to the prior quarter, while the year-ago quarter also showed a negative free cash flow margin.
- Revenue was consistent, but operating cash flow became negative, leading to a negative free cash flow margin after subtracting capital expenditure. The cash conversion cycle became unfavorable as operating cash flow did not cover capital outflows.
- Compared to the preceding quarter, operating cash flow and free cash flow moved from positive to negative, and free cash flow margin declined. Versus the same quarter last year, both operating cash flow and free cash flow were lower, though the margin was slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$697.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$390.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$123.0M
Cash generated by operations before capital spending.
CapEx
$267.0M
Capital spending and related asset purchases.
FCF margin
-3.0%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $13.1B | $660.0M | $467.0M | $193.0M | 1.5% |
| 2023-09-30 | $13.3B | $323.0M | $375.0M | -$52.0M | -0.4% |
| 2023-12-30 | $13.3B | $1.3B | $354.0M | $946.0M | 7.1% |
| 2024-03-30 | $13.1B | -$123.0M | $267.0M | -$390.0M | -3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -269.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Turned Negative
Operating cash flow shifted from positive in the prior quarter to negative in the current quarter, which was the strongest observable driver behind the free cash flow decline. Revenue remained nearly unchanged, so the cash outflow from operations was the key factor.
Free cash flow moved from a positive to a negative position, and the free cash flow margin turned negative accordingly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was consistent, but operating cash flow became negative, leading to a negative free cash flow margin after subtracting capital expenditure. The cash conversion cycle became unfavorable as operating cash flow did not cover capital outflows.
Compared to the preceding quarter, operating cash flow and free cash flow moved from positive to negative, and free cash flow margin declined. Versus the same quarter last year, both operating cash flow and free cash flow were lower, though the margin was slightly improved.
Monitor the ability of operating cash flow to return to a positive level, as it drove the negative free cash flow result this quarter.