Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and from the same quarter last year. Free cash flow margin improved sequentially but was nearly stable compared to the year-ago quarter.
- Operating cash flow rose more than revenue, while capital expenditure also increased, resulting in higher free cash flow. The free cash flow margin improved from the prior quarter but remained close to the year-ago level.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin was nearly stable.
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
$690.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$957.0M
Cash generated by operations before capital spending.
CapEx
$267.0M
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $3.4B | $190.0M | $111.0M | $79.0M | 2.3% |
| 2023-06-30 | $3.6B | $658.0M | $143.0M | $515.0M | 14.3% |
| 2023-09-30 | $3.5B | $698.0M | $190.0M | $508.0M | 14.4% |
| 2023-12-31 | $3.7B | $957.0M | $267.0M | $690.0M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly supported a higher free cash flow and an improved free cash flow margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, while capital expenditure also increased, resulting in higher free cash flow. The free cash flow margin improved from the prior quarter but remained close to the year-ago level.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin was nearly stable.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased more than operating cash flow from the year-ago quarter.