Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined from the prior quarter and the year-ago quarter. Capital expenditure increased, resulting in negative free cash flow and a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. The combination of higher capital expenditure and lower operating cash flow produced a negative free cash flow and a negative free cash flow margin.
- Compared with the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative. Compared with the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$940.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$231.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
-6.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $4.5B | $1.4B | $1.4B | -$47.0M | -1.0% |
| 2023-09-30 | $4.5B | $1.9B | $1.5B | $442.0M | 9.8% |
| 2023-12-31 | $4.1B | $1.9B | $1.1B | $776.0M | 19.0% |
| 2024-03-31 | $3.7B | $1.0B | $1.2B | -$231.0M | -6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -20.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, while operating cash flow declined. This combination was the strongest observable driver of the negative free cash flow.
The increase in capital expenditure, alongside lower operating cash flow, reversed free cash flow from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. The combination of higher capital expenditure and lower operating cash flow produced a negative free cash flow and a negative free cash flow margin.
Compared with the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative. Compared with the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow weakened from positive to negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened and contributed to negative free cash flow.