Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were higher than the same quarter last year but lower than the prior quarter. The company's filing discusses ongoing uncertainties including inflation, customer acceptance of price increases, and supply chain matters.
- Operating cash flow was higher than a year ago but lower than the previous quarter. Capital expenditure was lower than the prior quarter and higher than the year-ago quarter. Consequently, free cash flow and margin improved year-over-year but weakened sequentially.
- Compared to the prior quarter, free cash flow margin decreased as operating cash flow fell while revenue was stable. Relative to the same quarter last year, free cash flow margin increased as operating cash flow grew more than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$817.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$248.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$273.1M
Cash generated by operations before capital spending.
CapEx
$25.0M
Capital spending and related asset purchases.
FCF margin
17.4%
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 | $1.3B | $157.6M | $23.2M | $134.4M | 10.1% |
| 2022-09-30 | $1.3B | $223.7M | $59.3M | $164.4M | 12.5% |
| 2022-12-31 | $1.4B | $351.1M | $80.7M | $270.4M | 18.8% |
| 2023-03-31 | $1.4B | $273.1M | $25.0M | $248.1M | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Year-over-year free cash flow improvement
Free cash flow and margin were higher than the same quarter in the prior year, supported by a higher operating cash flow.
The company generated more free cash per dollar of revenue compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year ago but lower than the previous quarter. Capital expenditure was lower than the prior quarter and higher than the year-ago quarter. Consequently, free cash flow and margin improved year-over-year but weakened sequentially.
Compared to the prior quarter, free cash flow margin decreased as operating cash flow fell while revenue was stable. Relative to the same quarter last year, free cash flow margin increased as operating cash flow grew more than capital expenditure.
The level of operating cash flow relative to revenue, given its sequential decline despite stable revenue.