Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower compared to both the prior quarter and the same quarter last year. Revenue was lower than the prior quarter but higher than the year-ago period.
- Operating cash flow decreased relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was also lower sequentially but higher year-over-year.
- Sequentially, revenue, operating cash flow, capital expenditure, free cash flow, and margin all declined. Year-over-year, revenue increased but operating cash flow, free cash flow, and margin decreased, while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$990.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$421.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$624.0M
Cash generated by operations before capital spending.
CapEx
$203.0M
Capital spending and related asset purchases.
FCF margin
8.6%
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 | $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% |
| 2023-12-31 | $4.9B | $624.0M | $203.0M | $421.0M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | 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 contraction
The decline in operating cash flow was the primary factor behind the lower free cash flow, as revenue decreased only modestly sequentially.
Free cash flow margin weakened significantly compared to both periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was also lower sequentially but higher year-over-year.
Sequentially, revenue, operating cash flow, capital expenditure, free cash flow, and margin all declined. Year-over-year, revenue increased but operating cash flow, free cash flow, and margin decreased, while capital expenditure increased.
Monitor the trend in operating cash flow given its decline relative to revenue.