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 was higher than the prior quarter but lower than the same quarter a year earlier, supported by stronger operating cash flow conversion. The free cash flow margin improved sequentially but was slightly weaker than the year-ago period.
- Revenue was lower than both comparison periods, but operating cash flow as a proportion of revenue was higher than the prior quarter, contributing to a higher free cash flow margin. Capital expenditure decreased sequentially, further supporting free cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin improved; compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$878.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$947.0M
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
43.6%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.4B | $889.0M | $66.0M | $823.0M | 24.3% |
| 2022-09-30 | $2.3B | $990.0M | $190.0M | $800.0M | 34.5% |
| 2022-12-31 | $2.6B | $585.0M | $134.0M | $451.0M | 17.3% |
| 2023-03-31 | $2.0B | $947.0M | $69.0M | $878.0M | 43.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Operating Cash Flow Improvement
Operating cash flow increased significantly from the prior quarter despite lower revenue, driving a higher free cash flow. This was the strongest observable factor in the quarter's cash generation.
The improvement in operating cash flow was the primary reason for the sequential increase in 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 lower than both comparison periods, but operating cash flow as a proportion of revenue was higher than the prior quarter, contributing to a higher free cash flow margin. Capital expenditure decreased sequentially, further supporting free cash flow.
Compared to the immediately preceding quarter, free cash flow and margin improved; compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor the progress of the proposed transactions with Incitec Pivot Limited and the integration of the Waggaman ammonia production complex, as discussed in the filing.