Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while capital expenditure declined, lifting free cash flow and its margin. Revenue also increased compared to both the prior quarter and the same quarter last year.
- Revenue grew, operating cash flow increased substantially, and capital expenditure decreased, resulting in much higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and its margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, all metrics improved, with free cash flow and margin notably above prior levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$582.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$859.0M
Cash generated by operations before capital spending.
CapEx
$277.0M
Capital spending and related asset purchases.
FCF margin
9.2%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $5.4B | $597.0M | $226.0M | $371.0M | 6.9% |
| 2022-12-31 | $5.9B | $898.0M | $269.0M | $629.0M | 10.7% |
| 2023-03-31 | $5.7B | $461.0M | $310.0M | $151.0M | 2.6% |
| 2023-06-30 | $6.3B | $859.0M | $277.0M | $582.0M | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Surge
Operating cash flow increased substantially from both the prior quarter and the same quarter last year, while capital expenditure declined sequentially, leading to a large rise in free cash flow and margin.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow markedly above prior levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, operating cash flow increased substantially, and capital expenditure decreased, resulting in much higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and its margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter a year ago, all metrics improved, with free cash flow and margin notably above prior levels.
Monitor whether operating cash flow can sustain its higher level relative to revenue in subsequent quarters.