Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2024, free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by stable operating cash flow and lower capital expenditure. The free cash flow margin rose to a level higher than both comparative periods, reflecting stronger cash conversion efficiency.
- Revenue remained stable sequentially, while operating cash flow was unchanged. Capital expenditure declined from the previous quarter, leading to an increase in free cash flow and a higher free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow were both higher, capital expenditure was similar, and free cash flow and margin also improved.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, while revenue and operating cash flow were stable. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher, with capital expenditure essentially unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$699.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$668.0M
Capital spending and related asset purchases.
FCF margin
13.5%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $5.1B | $1.0B | $520.0M | $510.0M | 10.0% |
| 2023-09-30 | $5.2B | $1.3B | $673.0M | $590.0M | 11.4% |
| 2023-12-31 | $5.2B | $1.4B | $1.0B | $340.0M | 6.5% |
| 2024-03-31 | $5.2B | $1.4B | $668.0M | $699.0M | 13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | 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.
Improved Free Cash Flow Margin
The free cash flow margin was higher than both the prior quarter and the year-ago quarter, supported by operating cash flow that was stable sequentially and higher year over year, combined with lower capital expenditure relative to the prior quarter.
This stronger cash conversion efficiency enhances the company's financial flexibility without requiring an increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially, while operating cash flow was unchanged. Capital expenditure declined from the previous quarter, leading to an increase in free cash flow and a higher free cash flow margin. Compared to the same quarter last year, revenue and operating cash flow were both higher, capital expenditure was similar, and free cash flow and margin also improved.
Compared to the immediately preceding quarter, free cash flow and margin were higher, while revenue and operating cash flow were stable. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher, with capital expenditure essentially unchanged.
Monitor capital expenditure levels and share repurchase activity, as the filing notes the company has the ability to adjust these plans to manage liquidity.