Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive and the margin improved compared to the same quarter one year earlier. However, both revenue and free cash flow were lower than the immediately preceding quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$548.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$654.4M
Cash generated by operations before capital spending.
CapEx
$105.6M
Capital spending and related asset purchases.
FCF margin
14.1%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $6.9B | $947.2M | $69.1M | $878.2M | 12.7% |
| 2022-09-30 | $5.8B | $1.5B | $85.7M | $1.4B | 24.6% |
| 2022-12-31 | $4.4B | $971.4M | $134.9M | $836.5M | 19.2% |
| 2023-03-31 | $3.9B | $654.4M | $105.6M | $548.7M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Cash generation strength
Operating cash flow was substantially higher than the year-ago quarter despite lower revenue, leading to a higher free cash flow margin.
This drove a material improvement in free cash flow margin compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin were higher.
Monitor the trend in revenue relative to operating cash flow conversion, as revenue declined while cash generation improved year-over-year.