Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved significantly, driving a higher free cash flow margin.
- Cash conversion strengthened as operating cash flow increased while capital expenditure remained relatively stable, resulting in higher free cash flow and margin.
- Compared to the prior quarter, revenue decreased but operating cash flow increased, leading to a higher free cash flow margin. Versus the same quarter last year, all metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$534.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$746.0M
Cash generated by operations before capital spending.
CapEx
$212.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.6B | $933.0M | $178.0M | $755.0M | 16.3% |
| 2023-03-31 | $4.8B | -$9.0M | $269.0M | -$278.0M | -5.8% |
| 2023-06-30 | $5.2B | $535.0M | $222.0M | $313.0M | 6.0% |
| 2023-09-30 | $5.1B | $746.0M | $212.0M | $534.0M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Operating cash flow growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, despite a slight decline in revenue from the prior quarter.
This was the primary driver of the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow increased while capital expenditure remained relatively stable, resulting in higher free cash flow and margin.
Compared to the prior quarter, revenue decreased but operating cash flow increased, leading to a higher free cash flow margin. Versus the same quarter last year, all metrics improved.
Monitor operating cash flow levels in subsequent quarters to assess the sustainability of the improvement.