Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from a year ago but weakened from the preceding quarter.
- Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure decreased from the prior quarter, resulting in free cash flow that was higher than the year-ago quarter but slightly lower than the previous quarter. The free cash flow margin followed a similar pattern.
- Compared to the prior quarter, revenue was higher while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter last year, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$302.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$495.0M
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $6.6B | $599.0M | $147.0M | $452.0M | 6.9% |
| 2022-09-30 | $7.3B | $382.0M | $202.0M | $180.0M | 2.5% |
| 2022-12-31 | $7.8B | $817.0M | $463.0M | $354.0M | 4.6% |
| 2023-03-31 | $8.5B | $495.0M | $193.0M | $302.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Year-over-year free cash flow improvement
Revenue and operating cash flow were higher year over year, and capital expenditure increased less proportionally, corresponding to a higher free cash flow margin.
This improvement in free cash flow margin from the prior year is a positive signal for cash generation.
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 prior quarter. Capital expenditure decreased from the prior quarter, resulting in free cash flow that was higher than the year-ago quarter but slightly lower than the previous quarter. The free cash flow margin followed a similar pattern.
Compared to the prior quarter, revenue was higher while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter last year, all metrics were higher.
Monitor capital expenditure levels, as they decreased sharply from the prior quarter.