Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Coherent Corp. generated positive free cash flow in the current quarter, with operating cash flow exceeding capital expenditure. Revenue was lower than the prior quarter and the same quarter last year, but free cash flow margin improved significantly.
- Revenue declined compared to both prior periods, yet operating cash flow improved and capital expenditure was lower, resulting in positive free cash flow and a higher free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow was higher and the margin improved, as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, the company moved from negative to positive free cash flow, with a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$394.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$136.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.8M
Cash generated by operations before capital spending.
CapEx
$62.2M
Capital spending and related asset purchases.
FCF margin
13.0%
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 | $1.4B | $220.5M | $106.9M | $113.6M | 8.3% |
| 2023-03-31 | $1.2B | $152.4M | $97.1M | $55.3M | 4.5% |
| 2023-06-30 | $1.2B | $181.5M | $93.1M | $88.5M | 7.3% |
| 2023-09-30 | $1.1B | $198.8M | $62.2M | $136.6M | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -202.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash flow generation
Operating cash flow increased while capital expenditure was reduced, driving a substantial improvement in free cash flow.
This allowed the company to achieve a free cash flow margin that was higher than both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined compared to both prior periods, yet operating cash flow improved and capital expenditure was lower, resulting in positive free cash flow and a higher free cash flow margin.
Compared to the immediately preceding quarter, free cash flow was higher and the margin improved, as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, the company moved from negative to positive free cash flow, with a stronger margin.
Monitor the trend in accounts receivable, which decreased from the prior quarter end according to the company's balance sheet.