Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter last year and higher than the preceding quarter. Operating cash flow and free cash flow improved year-over-year and sequentially, resulting in a strengthened free cash flow margin.
- Operating cash flow as a proportion of revenue was higher relative to both the prior quarter and the year-ago quarter, supporting a rise in free cash flow after capital expenditure. The free cash flow margin increased from the same quarter one year earlier.
- Compared to the preceding quarter, revenue and operating cash flow were higher, while year-over-year revenue was lower and operating cash flow was higher. Capital expenditure was lower than the year-ago quarter, contributing to a higher free cash flow year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$419.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$863.6M
Cash generated by operations before capital spending.
CapEx
$444.5M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.8B | $958.2M | $574.3M | $383.9M | 21.0% |
| 2023-09-30 | $2.0B | $784.1M | $655.8M | $128.3M | 6.6% |
| 2023-12-31 | $2.2B | $480.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.7B | $863.6M | $444.5M | $419.1M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.6% | 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 Strength
Operating cash flow was higher both quarter-over-quarter and year-over-year despite a year-over-year decline in revenue. This was the most observable positive driver for free cash flow.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow and margin higher.
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 higher relative to both the prior quarter and the year-ago quarter, supporting a rise in free cash flow after capital expenditure. The free cash flow margin increased from the same quarter one year earlier.
Compared to the preceding quarter, revenue and operating cash flow were higher, while year-over-year revenue was lower and operating cash flow was higher. Capital expenditure was lower than the year-ago quarter, contributing to a higher free cash flow year-over-year.
Monitor the trend in capital expenditure relative to operating cash flow, as lower capital spending supported free cash flow improvement this quarter.