Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened relative to the year-ago period but weakened from the preceding quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter, indicating a mixed conversion trend.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, all metrics were higher, with a significant improvement in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
26.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.5B | $1.4B | $40.0M | $1.4B | 39.2% |
| 2022-09-30 | $3.5B | $1.4B | $42.0M | $1.3B | 38.0% |
| 2022-12-31 | $3.7B | $1.2B | $56.0M | $1.2B | 31.2% |
| 2023-03-31 | $3.8B | $1.1B | $41.0M | $1.0B | 26.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 243.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Revenue Growth
Revenue increased compared to both the prior quarter and the same quarter last year, providing a stronger base for cash generation.
Higher revenue supported improved free cash flow compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter, indicating a mixed conversion trend.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, all metrics were higher, with a significant improvement in free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it declined from the prior quarter despite higher revenue.