Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue also rose, while capital expenditure remained relatively stable.
- Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was modest and similar to prior periods, so the conversion from revenue to free cash flow improved.
- Free cash flow margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow was higher than both periods, while revenue was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$40.3M
Capital spending and related asset purchases.
FCF margin
19.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $7.3B | $829.1M | $47.5M | $781.6M | 10.8% |
| 2023-03-31 | $8.0B | $644.5M | $31.7M | $612.8M | 7.7% |
| 2023-06-30 | $9.7B | $787.5M | $29.1M | $758.4M | 7.8% |
| 2023-09-30 | $10.5B | $2.0B | $40.3M | $2.0B | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Improved operating cash flow
Operating cash flow increased markedly relative to revenue, resulting in a stronger free cash flow margin. Capital expenditure remained stable, amplifying the effect.
This improvement contributed to a higher free cash flow margin compared to prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was modest and similar to prior periods, so the conversion from revenue to free cash flow improved.
Free cash flow margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow was higher than both periods, while revenue was also higher.
Monitor the company's liquidity position and access to its revolving credit facility, as discussed in the filing.