Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased while free cash flow margin declined compared to both the prior quarter and the same quarter last year. Operating cash flow improved from a year ago but was lower than the preceding quarter, and capital expenditure was higher than a year ago.
- Cash conversion from revenue to operating cash flow weakened sequentially, as operating cash flow decreased while revenue rose. Compared to a year ago, operating cash flow improved, but capital expenditure also increased, resulting in a slightly lower free cash flow margin.
- Revenue was higher than both the prior quarter and the year-ago quarter. Free cash flow margin was lower than in both comparable periods, driven by a combination of lower operating cash flow sequentially and higher capital expenditure year over year.
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
$487.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$667.0M
Capital spending and related asset purchases.
FCF margin
9.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $5.4B | $1.2B | $667.0M | $487.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.3% | 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.
Capital Expenditure Increase
Capital expenditure was higher than a year ago, while operating cash flow did not increase proportionally, contributing to a lower free cash flow margin.
The higher capital expenditure relative to the year-ago period reduced free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to operating cash flow weakened sequentially, as operating cash flow decreased while revenue rose. Compared to a year ago, operating cash flow improved, but capital expenditure also increased, resulting in a slightly lower free cash flow margin.
Revenue was higher than both the prior quarter and the year-ago quarter. Free cash flow margin was lower than in both comparable periods, driven by a combination of lower operating cash flow sequentially and higher capital expenditure year over year.
Monitor the impact of the liability charge related to an investment in a waste diversion technology business, as disclosed in the filing.