Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter a year earlier, while operating cash flow, free cash flow, and free cash flow margin all improved. Sequentially, revenue, operating cash flow, free cash flow, and margin were lower, with capital expenditure slightly higher.
- The free cash flow margin improved from the year-ago quarter, driven by higher operating cash flow relative to revenue, though capital expenditure was also higher. The conversion from revenue to free cash flow weakened compared to the prior quarter, as operating cash flow declined while revenue was slightly lower.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, with operating cash flow declining and capital expenditure rising. Compared to the same quarter one year earlier, free cash flow, operating cash flow, and margin were higher, with revenue stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$375.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$95.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$114.7M
Cash generated by operations before capital spending.
CapEx
$19.0M
Capital spending and related asset purchases.
FCF margin
9.3%
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 |
|---|---|---|---|---|---|
| 2022-03-27 | $1.0B | $78.8M | $12.5M | $66.3M | 6.6% |
| 2022-06-19 | $1.1B | $74.6M | $20.2M | $54.4M | 5.1% |
| 2022-09-11 | $1.1B | $176.7M | $17.8M | $158.9M | 14.9% |
| 2023-03-26 | $1.0B | $114.7M | $19.0M | $95.7M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 year-over-year cash conversion
Operating cash flow increased relative to the year-ago quarter, lifting free cash flow and margin while revenue was unchanged. The filing text notes that receivable collection periods and inventory turn rates are faster than payment terms, supporting efficient working capital deployment.
This improvement provided a stronger base for free cash flow generation compared to the prior year, though the sequential decline warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin improved from the year-ago quarter, driven by higher operating cash flow relative to revenue, though capital expenditure was also higher. The conversion from revenue to free cash flow weakened compared to the prior quarter, as operating cash flow declined while revenue was slightly lower.
Compared to the immediately preceding quarter, free cash flow and margin were lower, with operating cash flow declining and capital expenditure rising. Compared to the same quarter one year earlier, free cash flow, operating cash flow, and margin were higher, with revenue stable.
Monitor the trend in operating cash flow, as it declined sequentially despite stable revenue year over year.