Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable sequentially as a lower capital expenditure offset a slight decline in operating cash flow. Compared to the same quarter last year, free cash flow was lower, driven by a significant reduction in operating cash flow.
- Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow decreased relative to both periods, while capital expenditure was lower than both comparison quarters. Free cash flow margin improved sequentially but weakened compared to the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow was slightly higher despite lower revenue and operating cash flow, as capital expenditure was lower. Versus the same quarter one year earlier, free cash flow was lower, with operating cash flow substantially lower and capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$512.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$611.7M
Cash generated by operations before capital spending.
CapEx
$99.7M
Capital spending and related asset purchases.
FCF margin
12.3%
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 | $3.9B | $654.4M | $105.6M | $548.7M | 14.1% |
| 2023-06-30 | $4.5B | $391.3M | $125.5M | $265.9M | 5.9% |
| 2023-09-30 | $4.5B | $649.5M | $145.5M | $504.0M | 11.1% |
| 2023-12-31 | $4.2B | $611.7M | $99.7M | $512.0M | 12.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 146.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, representing the most significant change among the cash flow components. This decline was the primary factor behind the year-over-year reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow generation compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow decreased relative to both periods, while capital expenditure was lower than both comparison quarters. Free cash flow margin improved sequentially but weakened compared to the same quarter last year.
Compared to the immediately preceding quarter, free cash flow was slightly higher despite lower revenue and operating cash flow, as capital expenditure was lower. Versus the same quarter one year earlier, free cash flow was lower, with operating cash flow substantially lower and capital expenditure also lower.
Monitor the trajectory of operating cash flow, which declined both sequentially and year-over-year.