Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year but weakened from the prior quarter. The cash conversion margin was higher than a year ago but lower than the preceding period.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the same quarter last year, while capital expenditure remained relatively stable across all periods. Free cash flow and its margin followed the pattern of operating cash flow.
- Compared to the prior quarter, free cash flow and its margin weakened due to lower operating cash flow. Compared to the same quarter last year, free cash flow and its margin improved significantly, driven by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$349.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$480.5M
Cash generated by operations before capital spending.
CapEx
$131.2M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $2.2B | $401.6M | $143.6M | $257.9M | 11.8% |
| 2023-03-31 | $2.4B | $455.0M | $120.4M | $334.7M | 14.1% |
| 2023-06-30 | $2.5B | $582.5M | $137.2M | $445.3M | 17.7% |
| 2023-09-30 | $2.5B | $480.5M | $131.2M | $349.3M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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 Growth
Operating cash flow was higher than the same quarter last year, which was the strongest observable driver of the year-over-year improvement in free cash flow.
This driver supported a higher free cash flow margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the same quarter last year, while capital expenditure remained relatively stable across all periods. Free cash flow and its margin followed the pattern of operating cash flow.
Compared to the prior quarter, free cash flow and its margin weakened due to lower operating cash flow. Compared to the same quarter last year, free cash flow and its margin improved significantly, driven by higher operating cash flow.
Monitor the trend in operating cash flow, as its decline from the prior quarter was the primary factor behind the weakening free cash flow.