Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For this quarter, free cash flow margin improved compared to the same quarter last year, but weakened sequentially. The company's rail-based freight transportation operations generated higher operating cash flow than a year ago.
- Revenue was stable compared to the year-ago quarter, while operating cash flow was higher, leading to improved free cash flow and margin. Sequentially, operating cash flow was lower and capital expenditure was higher, resulting in a decline in free cash flow and margin.
- Compared to the prior quarter, free cash flow and margin declined despite a slight increase in revenue. Versus the same quarter last year, free cash flow and margin improved significantly as operating cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$803.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$686.0M
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $3.7B | $1.5B | $686.0M | $803.0M | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.6% | 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 Improvement
Operating cash flow was higher than the same quarter last year, which was the primary factor behind the increase in free cash flow and margin, despite revenue remaining stable.
This stronger cash generation supported a higher free cash flow margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter, while operating cash flow was higher, leading to improved free cash flow and margin. Sequentially, operating cash flow was lower and capital expenditure was higher, resulting in a decline in free cash flow and margin.
Compared to the prior quarter, free cash flow and margin declined despite a slight increase in revenue. Versus the same quarter last year, free cash flow and margin improved significantly as operating cash flow increased.
Monitor capital expenditure levels, as they increased from the prior quarter and reduced free cash flow.