Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fiscal quarter ended December 31, 2023, free cash flow improved compared to both the prior quarter and the same quarter one year earlier, supported by higher operating cash flow and a strengthened free cash flow margin. Revenue was lower than the immediate prior quarter but higher than the year-ago quarter.
- Revenue decreased relative to the prior quarter, yet operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure rose compared to both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset the higher spending.
- Compared to the immediate prior quarter, free cash flow and free cash flow margin improved, while revenue was lower. Versus the same quarter one year earlier, all metrics including revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$459.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$516.4M
Cash generated by operations before capital spending.
CapEx
$57.3M
Capital spending and related asset purchases.
FCF margin
24.1%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $2.1B | $241.3M | $48.4M | $192.9M | 9.3% |
| 2023-06-30 | $2.1B | $195.3M | $40.1M | $155.2M | 7.4% |
| 2023-09-30 | $2.0B | $383.5M | $37.7M | $345.8M | 17.7% |
| 2023-12-31 | $1.9B | $516.4M | $57.3M | $459.1M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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
The increase in operating cash flow was the strongest observable driver, rising compared to both the prior quarter and the year-ago quarter, even as revenue declined versus the prior quarter.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased relative to the prior quarter, yet operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure rose compared to both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset the higher spending.
Compared to the immediate prior quarter, free cash flow and free cash flow margin improved, while revenue was lower. Versus the same quarter one year earlier, all metrics including revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher.
Monitor the trend in capital expenditure, which increased relative to both comparison periods and may affect future free cash flow.