Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than both the prior quarter and the same quarter last year. Operating cash flow improved year over year but was slightly lower than the preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter, contributing to a free cash flow margin that improved sequentially and year over year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$608.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$461.9M
Capital spending and related asset purchases.
FCF margin
24.1%
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 | $217.0M | $915.3M | $370.1M | $545.2M | 251.2% |
| 2022-09-30 | $220.6M | $932.3M | $459.2M | $473.1M | 214.5% |
| 2022-12-31 | $193.8M | $1.2B | $658.2M | $526.8M | 271.8% |
| 2023-03-31 | $2.5B | $1.1B | $461.9M | $608.6M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 193.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.3% | 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.
Free Cash Flow Growth
Free cash flow was higher than both the prior quarter and the year-ago quarter, driven by a combination of higher revenue and lower capital expenditure relative to the prior quarter.
The free cash flow margin improved sequentially and year over year, reflecting stronger cash generation efficiency.
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 lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter, contributing to a free cash flow margin that improved sequentially and year over year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a lower capital outlay supported free cash flow this quarter.