Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose, while revenue remained stable. Compared to the same quarter last year, free cash flow was lower despite a slight revenue increase.
- Revenue was unchanged from the prior quarter, but operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was modestly higher, yet the margin improvement was driven by stronger cash generation from operations.
- Compared to the preceding quarter, free cash flow and margin both improved. Relative to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower despite a higher revenue base.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$760.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$271.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $13.1B | -$123.0M | $267.0M | -$390.0M | -3.0% |
| 2024-06-29 | $13.4B | $796.0M | $263.0M | $533.0M | 4.0% |
| 2024-09-28 | $13.6B | $617.0M | $248.0M | $369.0M | 2.7% |
| 2024-12-28 | $13.6B | $1.0B | $271.0M | $760.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 211.7% | 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 increase
Operating cash flow rose compared to the prior quarter, which was the primary factor behind the sequential improvement in free cash flow. The increase outweighed a modest rise in capital expenditure.
The stronger cash generation from operations directly lifted free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was modestly higher, yet the margin improvement was driven by stronger cash generation from operations.
Compared to the preceding quarter, free cash flow and margin both improved. Relative to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower despite a higher revenue base.
Monitor the direction of operating cash flow, as it decreased from the year-ago level despite a slight revenue gain.