Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved sequentially, supported by higher revenue and operating cash flow. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while the free cash flow margin was slightly lower.
- Revenue converted into operating cash flow, and after capital expenditure, free cash flow yielded a margin in the high single digits. Capital spending consumed approximately one-third of operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and the free cash flow margin improved. Relative to the same quarter one year ago, revenue and operating cash flow were higher, free cash flow was slightly higher, but the free cash flow margin weakened slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$864.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$371.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$549.0M
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $3.0B | $163.0M | $62.0M | $101.0M | 3.3% |
| 2023-07-01 | $3.4B | $296.0M | $83.0M | $213.0M | 6.2% |
| 2023-09-30 | $3.3B | $258.0M | $79.0M | $179.0M | 5.4% |
| 2023-12-30 | $3.9B | $549.0M | $178.0M | $371.0M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 187.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Operating Cash Flow Growth
Operating cash flow rose significantly from the prior quarter and was also higher than the year-ago period, providing the primary support for the sequential improvement in free cash flow.
This higher cash generation enabled the company to increase capital expenditure while still delivering stronger free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow, and after capital expenditure, free cash flow yielded a margin in the high single digits. Capital spending consumed approximately one-third of operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and the free cash flow margin improved. Relative to the same quarter one year ago, revenue and operating cash flow were higher, free cash flow was slightly higher, but the free cash flow margin weakened slightly.
Monitor the allocation of free cash flow between the Manufacturing and Finance borrowing groups, as the company's liquidity framework separates these activities.