Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved markedly from the prior quarter and the year-ago period, driving a positive free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year earlier.
- Revenue was stable compared to both periods, while operating cash flow increased substantially, resulting in a higher cash conversion rate. Free cash flow turned positive after negative figures in the comparable quarters.
- Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was lower, leading to a significant improvement in free cash flow. Versus the same quarter one year earlier, operating cash flow was higher despite similar revenue, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$590.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
21.4%
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 | $2.0B | $398.0M | $1.0B | -$636.0M | -32.5% |
| 2022-09-30 | $1.9B | $347.0M | $1.2B | -$852.0M | -44.7% |
| 2022-12-31 | $2.7B | $485.0M | $1.3B | -$855.0M | -32.0% |
| 2023-03-31 | $2.8B | $1.7B | $1.1B | $590.0M | 21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 181.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.7% | 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.
Operating Cash Flow Recovery
Operating cash flow increased sharply from both the prior quarter and the year-ago quarter, while revenue remained stable. This drove a strong positive free cash flow margin.
The improvement in cash generation provided a solid base for funding capital investments without external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both periods, while operating cash flow increased substantially, resulting in a higher cash conversion rate. Free cash flow turned positive after negative figures in the comparable quarters.
Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was lower, leading to a significant improvement in free cash flow. Versus the same quarter one year earlier, operating cash flow was higher despite similar revenue, and free cash flow improved from negative to positive.
Monitor the sustainability of operating cash flow levels relative to capital spending.