Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Free cash flow turned positive from a year ago but was lower than the preceding quarter.
- Operating cash flow improved substantially from the year-ago period, though it was lower than the previous quarter. With capital expenditure also lower than the prior quarter, free cash flow margin was higher than a year ago but lower than the preceding quarter.
- Compared to the prior quarter, both operating cash flow and free cash flow decreased, while revenue increased. Versus the same quarter last year, operating cash flow and free cash flow were significantly higher, and revenue was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$436.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$528.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $54.6B | $528.0M | $92.0M | $436.0M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3633.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Year-over-year operating cash flow recovery
Operating cash flow was much higher than the same quarter last year, even after including a large annual settlement payment. The improvement was the primary factor behind the swing from negative to positive free cash flow.
This recovery strengthened the company's cash generation ability compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved substantially from the year-ago period, though it was lower than the previous quarter. With capital expenditure also lower than the prior quarter, free cash flow margin was higher than a year ago but lower than the preceding quarter.
Compared to the prior quarter, both operating cash flow and free cash flow decreased, while revenue increased. Versus the same quarter last year, operating cash flow and free cash flow were significantly higher, and revenue was also higher.
The annual opioid settlement payment, which the company noted was included in operating cash flow, represents a recurring cash outflow worth monitoring.