Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, revenue was higher than both the prior quarter and the same quarter a year ago, but operating cash flow and free cash flow were lower, resulting in a weakened cash conversion margin. The filing notes that the company's full-year operating cash flow included an opioid settlement payment.
- Revenue increased, while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, operating cash flow, free cash flow, and margin were all lower, while revenue was higher. Compared to the same quarter a year ago, all cash flow metrics were lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$646.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$863.0M
Cash generated by operations before capital spending.
CapEx
$217.0M
Capital spending and related asset purchases.
FCF margin
1.2%
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 | $49.6B | $23.0M | $70.0M | -$47.0M | -0.1% |
| 2022-12-31 | $51.5B | $597.0M | $85.0M | $512.0M | 1.0% |
| 2023-03-31 | $50.5B | $1.4B | $109.0M | $1.3B | 2.5% |
| 2023-06-30 | $53.4B | $863.0M | $217.0M | $646.0M | 1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12920.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Lower operating cash flow
Operating cash flow decreased compared to both the prior quarter and the same quarter a year ago, while revenue grew.
Free cash flow and free cash flow margin decreased as a result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, operating cash flow, free cash flow, and margin were all lower, while revenue was higher. Compared to the same quarter a year ago, all cash flow metrics were lower despite higher revenue.
Monitor the trend in operating cash flow given the decline from both the prior quarter and the year-ago quarter.