Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply, with operating cash flow and free cash flow higher than both the prior quarter and the year-ago quarter, while revenue remained stable. The free cash flow margin expanded considerably.
- Revenue was stable, but operating cash flow increased substantially and capital expenditure decreased, resulting in a higher free cash flow and an expanded margin.
- Compared to both the immediately preceding quarter and the same quarter one year earlier, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$864.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$455.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$527.0M
Cash generated by operations before capital spending.
CapEx
$72.0M
Capital spending and related asset purchases.
FCF margin
19.9%
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 | $2.3B | $94.0M | $127.0M | -$33.0M | -1.4% |
| 2023-06-30 | $2.3B | $444.0M | $104.0M | $340.0M | 14.5% |
| 2023-09-30 | $2.3B | $207.0M | $105.0M | $102.0M | 4.4% |
| 2023-12-31 | $2.3B | $527.0M | $72.0M | $455.0M | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 237.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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
The quarter's operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower, leading to a stronger free cash flow and margin.
This driver underpins the quarter's cash conversion strength and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow increased substantially and capital expenditure decreased, resulting in a higher free cash flow and an expanded margin.
Compared to both the immediately preceding quarter and the same quarter one year earlier, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
Monitor future operating cash flow trends, as the annual filing noted a decrease in full-year operating cash flow driven by lower operating income and a change in the timing of COVID-19 testing revenue collection.