Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure also rose, but the cash conversion strengthened notably.
- Operating cash flow rose relative to revenue, while capital expenditure increased at a slower pace, resulting in a higher free cash flow and free cash flow margin compared to both the prior quarter and the year-ago period.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow also improved, with the free cash flow margin showing a stronger level than in either comparative period.
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
$736.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$841.8M
Cash generated by operations before capital spending.
CapEx
$105.0M
Capital spending and related asset purchases.
FCF margin
22.1%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $3.0B | $532.4M | $97.7M | $434.7M | 14.6% |
| 2023-06-30 | $3.1B | $536.4M | $95.4M | $441.0M | 14.4% |
| 2023-09-30 | $3.2B | $618.1M | $74.7M | $543.4M | 17.0% |
| 2023-12-31 | $3.3B | $841.8M | $105.0M | $736.8M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 Increase
Operating cash flow rose substantially compared to both the prior quarter and the same quarter last year, driven by higher revenue and an improved conversion rate. This was the primary factor behind the increase in free cash flow.
The stronger operating cash flow more than offset the increase in capital expenditure, resulting in a higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, while capital expenditure increased at a slower pace, resulting in a higher free cash flow and free cash flow margin compared to both the prior quarter and the year-ago period.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow also improved, with the free cash flow margin showing a stronger level than in either comparative period.
Monitor the company's compliance with financial covenants under its credit facilities, as discussed in the liquidity and capital resources section of the filing.