Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company changed its corporate name to Cencora during the quarter. Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter a year earlier, supported by higher revenue and operating cash flow.
- Revenue increased, operating cash flow rose significantly, and capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter a year earlier, revenue and free cash flow were higher, while operating cash flow also improved and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$175.5M
Capital spending and related asset purchases.
FCF margin
2.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $62.8B | $710.1M | $75.7M | $634.4M | 1.0% |
| 2023-03-31 | $63.5B | $629.5M | $102.9M | $526.7M | 0.8% |
| 2023-06-30 | $66.9B | $744.9M | $104.3M | $640.7M | 1.0% |
| 2023-09-30 | $68.9B | $1.8B | $175.5M | $1.7B | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 471.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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 improvement
Operating cash flow was higher sequentially and year-over-year, providing the primary boost to free cash flow.
This drove the higher free cash flow margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow rose significantly, and capital expenditure remained relatively stable, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter a year earlier, revenue and free cash flow were higher, while operating cash flow also improved and the margin widened.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained steady while revenue grew.