Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow fell from the prior quarter while capital expenditure also decreased, resulting in lower free cash flow despite a higher free cash flow margin. Compared to the same quarter last year, operating cash flow and free cash flow improved, and the margin strengthened.
- Revenue declined from the prior quarter, but operating cash flow decreased at a slower pace relative to revenue, while capital expenditure dropped, leading to a higher free cash flow margin. The cash conversion from revenue to free cash flow strengthened sequentially and year-over-year.
- Compared to the prior quarter, revenue and operating cash flow were lower, yet free cash flow margin improved as capital expenditure declined. Versus the same quarter a year ago, revenue was lower, but operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$864.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$895.7M
Cash generated by operations before capital spending.
CapEx
$31.3M
Capital spending and related asset purchases.
FCF margin
67.3%
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 | $1.4B | $352.7M | $69.6M | $283.2M | 20.5% |
| 2023-06-30 | $2.8B | $1.7B | $60.7M | $1.7B | 59.2% |
| 2023-09-30 | $2.5B | $1.1B | $62.7M | $1.0B | 40.1% |
| 2023-12-31 | $1.3B | $895.7M | $31.3M | $864.4M | 67.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 569.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Free Cash Flow Margin
Free cash flow margin increased from both the prior quarter and the year-ago quarter, driven by operating cash flow as a higher proportion of revenue and lower capital expenditure.
The margin improvement indicates a higher conversion of revenue into free cash flow despite lower revenue levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, but operating cash flow decreased at a slower pace relative to revenue, while capital expenditure dropped, leading to a higher free cash flow margin. The cash conversion from revenue to free cash flow strengthened sequentially and year-over-year.
Compared to the prior quarter, revenue and operating cash flow were lower, yet free cash flow margin improved as capital expenditure declined. Versus the same quarter a year ago, revenue was lower, but operating cash flow, free cash flow, and margin were all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as its reduction contributed to the higher free cash flow margin this quarter.