Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and the year-ago quarter. Free cash flow improved significantly compared to the year-ago quarter, driven by higher operating cash flow.
- Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter. As a result, free cash flow and free cash flow margin improved compared to both periods.
- Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher. Compared to the year-ago quarter, revenue was stable, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow and margin were substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$631.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$729.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
13.1%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.9B | $528.0M | $43.0M | $485.0M | 9.9% |
| 2022-09-30 | $4.9B | $1.0B | $79.0M | $953.0M | 19.6% |
| 2022-12-31 | $4.8B | $702.0M | $90.0M | $612.0M | 12.6% |
| 2023-03-31 | $4.8B | $729.0M | $98.0M | $631.0M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 both the prior quarter and the year-ago quarter, with the year-ago comparison showing a particularly large increase. The filing attributes the year-over-year rise to improved collections of trade accounts receivable.
This drove free cash flow and margin higher versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter. As a result, free cash flow and free cash flow margin improved compared to both periods.
Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher. Compared to the year-ago quarter, revenue was stable, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow and margin were substantially higher.
Monitor the trend in trade accounts receivable, as the filing notes improved collections contributed to the operating cash flow increase.