Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow was lower than both the preceding quarter and the same quarter one year earlier, despite higher revenue. The free cash flow margin decreased, driven by a higher capital expenditure, while operating cash flow remained relatively stable.
- Revenue was higher than the prior periods. Operating cash flow was slightly higher than the preceding quarter and similar to the year-ago quarter. Capital expenditure was substantially higher, resulting in lower free cash flow and a lower margin.
- Compared to the preceding quarter, free cash flow and margin were lower, while revenue and operating cash flow were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, revenue was higher, and operating cash flow was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$840.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$222.0M
Capital spending and related asset purchases.
FCF margin
19.5%
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 | $4.5B | $120.0M | $70.0M | $50.0M | 1.1% |
| 2023-06-30 | $6.7B | $384.0M | $74.0M | $310.0M | 4.6% |
| 2023-09-30 | $3.4B | $1.0B | $73.0M | $968.0M | 28.7% |
| 2023-12-31 | $4.3B | $1.1B | $222.0M | $840.0M | 19.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 200.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than in both the preceding quarter and the same quarter one year earlier, outpacing the growth in operating cash flow.
This increase in capital expenditure reduced free cash flow and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior periods. Operating cash flow was slightly higher than the preceding quarter and similar to the year-ago quarter. Capital expenditure was substantially higher, resulting in lower free cash flow and a lower margin.
Compared to the preceding quarter, free cash flow and margin were lower, while revenue and operating cash flow were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower, revenue was higher, and operating cash flow was similar.
The level of capital expenditure should be monitored, as its increase was the primary factor reducing free cash flow.