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 increased compared to the prior quarter and the same quarter a year ago, leading to a higher free cash flow margin. The improvement was driven by stronger cash generation from operations, while capital expenditure remained stable.
- Operating cash flow rose significantly, and with capital expenditure steady, free cash flow increased accordingly. The free cash flow margin improved versus both the immediately preceding quarter and the year-ago period.
- All key metrics — revenue, operating cash flow, free cash flow, and margin — were higher than in the prior quarter and the same quarter one year earlier. The improvement in free cash flow margin was notable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
13.4%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $9.2B | $1.2B | $50.0M | $1.1B | 12.4% |
| 2023-09-30 | $9.3B | $966.0M | $61.0M | $905.0M | 9.7% |
| 2023-12-31 | $9.9B | $823.0M | $55.0M | $768.0M | 7.7% |
| 2024-03-31 | $10.1B | $1.4B | $57.0M | $1.4B | 13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -207.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 strength
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, driven by adjustments for non-cash items and a decrease in cash consumed by working capital, mainly due to increased accrued insurance reserves and expenses.
This increase was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly, and with capital expenditure steady, free cash flow increased accordingly. The free cash flow margin improved versus both the immediately preceding quarter and the year-ago period.
All key metrics — revenue, operating cash flow, free cash flow, and margin — were higher than in the prior quarter and the same quarter one year earlier. The improvement in free cash flow margin was notable.
Monitor changes in working capital, particularly the increase in accrued insurance reserves and accrued expenses, as noted in the filing.