Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the same quarter last year, associated with a higher operating cash flow and a lower capital expenditure. Sequentially, free cash flow declined as operating cash flow decreased and capital expenditure increased.
- Cash conversion, measured by free cash flow margin, was higher than the same quarter last year but lower than the previous quarter. Revenue was stable sequentially while operating cash flow and capital expenditure moved in opposite directions.
- Compared to the previous quarter, free cash flow and margin weakened due to lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin strengthened, supported by a higher operating cash flow and a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$485.2M
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $2.9B | $462.6M | $147.7M | $314.9M | 11.0% |
| 2023-06-30 | $3.0B | $450.1M | $124.5M | $325.6M | 10.9% |
| 2023-09-30 | $3.1B | $661.2M | $136.8M | $524.4M | 16.8% |
| 2023-12-31 | $3.1B | $485.2M | $159.0M | $326.2M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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.
Year-over-Year Operating Cash Flow Growth
The year-over-year increase in operating cash flow was the most significant observable change, rising from the prior year level while capital expenditure declined. This combination drove the higher free cash flow and margin compared to the same quarter last year.
The stronger operating cash flow was the key contributor to the year-over-year recovery in free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion, measured by free cash flow margin, was higher than the same quarter last year but lower than the previous quarter. Revenue was stable sequentially while operating cash flow and capital expenditure moved in opposite directions.
Compared to the previous quarter, free cash flow and margin weakened due to lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin strengthened, supported by a higher operating cash flow and a lower capital expenditure.
Monitor the sequential decline in operating cash flow, which was the primary factor in the quarter-over-quarter free cash flow decrease.