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 and margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by operating cash flow that increased while revenue was stable sequentially and lower year over year. The cash conversion cycle shortened, as indicated in the filing.
- Revenue was stable sequentially and lower year over year, but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin.
- Compared to the preceding quarter, free cash flow and margin improved significantly. Compared to the same quarter one year earlier, free cash flow and margin also improved, despite lower revenue.
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
$425.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$468.6M
Cash generated by operations before capital spending.
CapEx
$43.4M
Capital spending and related asset purchases.
FCF margin
7.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-06-30 | $5.6B | $228.2M | $39.6M | $188.6M | 3.4% |
| 2023-09-30 | $5.6B | $468.6M | $43.4M | $425.2M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 Strength
Operating cash flow was higher both sequentially and year over year, supporting free cash flow.
This improvement was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and lower year over year, but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin.
Compared to the preceding quarter, free cash flow and margin improved significantly. Compared to the same quarter one year earlier, free cash flow and margin also improved, despite lower revenue.
Monitor the cash conversion cycle, which the filing reports as shorter than the same quarter one year earlier.