Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter, driven by higher operating cash flow. The margin strengthened compared to the previous quarter but was slightly lower than the same quarter last year.
- Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure was slightly higher than the previous quarter but lower than the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin both improved. Versus the same quarter last year, free cash flow was higher while the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$175.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$759.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$853.0M
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
8.6%
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 | $7.3B | -$745.0M | $60.0M | -$805.0M | -11.0% |
| 2023-06-30 | $7.6B | -$11.0M | $75.0M | -$86.0M | -1.1% |
| 2023-09-30 | $7.7B | $383.0M | $76.0M | $307.0M | 4.0% |
| 2023-12-31 | $8.9B | $853.0M | $94.0M | $759.0M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 the prior quarter, outpacing revenue growth and supporting higher free cash flow. This was the strongest observable driver of the quarter's performance.
The rise in operating cash flow directly improved free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure was slightly higher than the previous quarter but lower than the year-ago quarter.
Compared to the prior quarter, free cash flow and margin both improved. Versus the same quarter last year, free cash flow was higher while the margin was slightly lower.
Monitor future capital expenditure commitments, as the filing indicates expected capital requirements for the upcoming year.