Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved compared to the prior quarter, but free cash flow margin was lower than the same quarter last year. The current quarter's cash conversion was supported by higher revenue and operating cash flow relative to the preceding quarter.
- Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, resulting in higher free cash flow. Capital expenditure was higher than both the prior quarter and the year-ago quarter, which partially offset the improvement in operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. However, compared to the same quarter a year ago, while revenue was higher, free cash flow and free cash flow margin declined due to a larger increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$594.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$830.3M
Cash generated by operations before capital spending.
CapEx
$235.4M
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2022-11-19 | $4.0B | $793.6M | $114.4M | $679.2M | 17.0% |
| 2023-02-11 | $3.7B | $354.5M | $144.8M | $209.6M | 5.7% |
| 2023-05-06 | $4.1B | $724.7M | $171.2M | $553.5M | 13.5% |
| 2023-11-18 | $4.2B | $830.3M | $235.4M | $594.8M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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 improvement
Operating cash flow was higher than both the prior quarter and the same quarter a year ago, driven by increased revenue. This supported higher capital spending while still generating positive free cash flow.
The increase in operating cash flow provided a stronger base for investing activities and shareholder returns.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, resulting in higher free cash flow. Capital expenditure was higher than both the prior quarter and the year-ago quarter, which partially offset the improvement in operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. However, compared to the same quarter a year ago, while revenue was higher, free cash flow and free cash flow margin declined due to a larger increase in capital expenditure.
Monitor capital expenditure levels, as they increased compared to both the prior quarter and the year-ago quarter, affecting free cash flow generation.