Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher sequentially but lower compared with the same quarter a year earlier. Free cash flow and free cash flow margin weakened versus both the prior quarter and the same quarter one year ago.
- Operating cash flow declined relative to both the preceding quarter and the prior-year quarter, while capital expenditure increased sequentially and compared with a year ago. The combination produced a lower free cash flow and a narrower free cash flow margin.
- Compared with the immediately preceding quarter, revenue improved but operating cash flow weakened, free cash flow declined, and free cash flow margin narrowed. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$434.0M
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $5.9B | $1.9B | $266.0M | $1.7B | 28.3% |
| 2023-06-30 | $5.9B | $1.9B | $329.0M | $1.6B | 27.0% |
| 2023-09-29 | $5.6B | $1.7B | $354.0M | $1.3B | 23.4% |
| 2023-12-31 | $6.4B | $1.6B | $434.0M | $1.2B | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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.
Weakened cash generation
Operating cash flow declined relative to both comparison periods despite higher sequential revenue, indicating a shift in the relationship between revenue and cash conversion. Free cash flow margin fell to the lowest point among the periods shown.
Lower free cash flow and margin constrain the cash available for deployment.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined relative to both the preceding quarter and the prior-year quarter, while capital expenditure increased sequentially and compared with a year ago. The combination produced a lower free cash flow and a narrower free cash flow margin.
Compared with the immediately preceding quarter, revenue improved but operating cash flow weakened, free cash flow declined, and free cash flow margin narrowed. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all substantially lower.
Monitor capital expenditure, which rose both sequentially and year-over-year, as higher spending contributed to the lower free cash flow.