Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the preceding quarter due to stronger operating cash flow, though revenue was slightly lower. Compared with the same quarter last year, both revenue and free cash flow were lower, with a weakened margin.
- Operating cash flow exceeded capital expenditure, producing a positive free cash flow margin. The margin improved from the previous quarter but declined relative to the year-ago period, reflecting a mixed conversion pattern across the two comparisons.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, with margin improved. Versus the same quarter a year ago, all metrics were lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$978.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$574.0M
Capital spending and related asset purchases.
FCF margin
27.4%
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 | $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% |
| 2023-09-30 | $3.6B | $1.6B | $574.0M | $978.0M | 27.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.1% | 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.
Labor Agreement Payments
The filing indicates that operating cash flow for the nine-month period was affected by unfavorable working capital activities, including payments for retroactive wages and bonuses related to finalized labor agreements, partially offset by postponed federal tax payments.
These one-time payments reduced cash from operations in the current period and their resolution may influence future cash flow comparisons.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing a positive free cash flow margin. The margin improved from the previous quarter but declined relative to the year-ago period, reflecting a mixed conversion pattern across the two comparisons.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, with margin improved. Versus the same quarter a year ago, all metrics were lower, and margin weakened.
Monitor the impact of retroactive wage payments and associated taxes related to finalized labor agreements, as noted in the filing.