Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved sequentially but was slightly lower than the same quarter last year. The free cash flow margin strengthened compared to both periods, reflecting improved cash conversion efficiency.
- Revenue declined from both the prior quarter and the year-ago quarter, yet operating cash flow increased sequentially, leading to higher free cash flow and an improved margin. Capital expenditure remained relatively stable.
- Compared to the immediately preceding quarter, free cash flow and margin both improved. Versus the same quarter one year earlier, free cash flow was slightly lower but the margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$333.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$365.4M
Cash generated by operations before capital spending.
CapEx
$31.7M
Capital spending and related asset purchases.
FCF margin
6.5%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $6.1B | $380.3M | $22.3M | $358.0M | 5.8% |
| 2022-09-30 | $6.2B | $332.9M | $33.6M | $299.3M | 4.8% |
| 2022-12-31 | $5.4B | $241.9M | $30.6M | $211.3M | 3.9% |
| 2023-03-31 | $5.1B | $365.4M | $31.7M | $333.7M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 improvement
Operating cash flow rose from the prior quarter despite lower revenue, driving a higher free cash flow.
This improvement was the primary factor behind the sequential free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from both the prior quarter and the year-ago quarter, yet operating cash flow increased sequentially, leading to higher free cash flow and an improved margin. Capital expenditure remained relatively stable.
Compared to the immediately preceding quarter, free cash flow and margin both improved. Versus the same quarter one year earlier, free cash flow was slightly lower but the margin was higher.
Monitor the cash conversion cycle, which the filing reports as improved compared to the same quarter last year.