Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held steady versus the preceding quarter but was lower than the same quarter one year earlier. Free cash flow and its margin weakened relative to both periods, driven by higher capital expenditure and lower operating cash flow.
- Revenue was unchanged, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a weakened free cash flow margin.
- Compared to the prior quarter, free cash flow and margin declined. Versus the same quarter a year ago, both metrics also declined, with revenue slightly lower and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$652.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$565.0M
Capital spending and related asset purchases.
FCF margin
17.6%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.9B | $1.7B | $626.0M | $1.1B | 28.2% |
| 2022-12-31 | $3.7B | $1.3B | $676.0M | $595.0M | 16.0% |
| 2023-03-31 | $3.7B | $1.3B | $432.0M | $824.0M | 22.2% |
| 2023-06-30 | $3.7B | $1.2B | $565.0M | $652.0M | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.3% | 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.
Capital expenditure increase
Capital expenditure was higher compared to both the prior quarter and the same quarter a year ago, contributing to the decline in free cash flow.
If capital expenditure remains at elevated levels, free cash flow may continue to be pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a weakened free cash flow margin.
Compared to the prior quarter, free cash flow and margin declined. Versus the same quarter a year ago, both metrics also declined, with revenue slightly lower and capital expenditure higher.
Monitor the impact of retroactive wage and bonus payments on working capital, as highlighted in the filing.