Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was slightly lower than the preceding quarter but higher than the same quarter a year earlier. Operating cash flow and free cash flow were sharply lower sequentially, while free cash flow margin weakened markedly; however, compared to the prior year, both cash flow measures improved modestly.
- The cash conversion from revenue to operating cash flow was lower than the preceding quarter, as operating cash flow represented a smaller portion of revenue. Combined with capital expenditure, free cash flow margin was minimal, similar to the year-ago level.
- Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin all declined substantially. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while the margin remained stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.2M
Cash generated by operations before capital spending.
CapEx
$173.7M
Capital spending and related asset purchases.
FCF margin
0.7%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.6B | $322.4M | $168.8M | $153.6M | 4.3% |
| 2022-09-30 | $3.7B | $436.7M | $192.5M | $244.2M | 6.7% |
| 2022-12-31 | $3.7B | $859.2M | $202.8M | $656.4M | 17.9% |
| 2023-03-31 | $3.6B | $198.2M | $173.7M | $24.5M | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Operating cash flow variability
The sequential drop in operating cash flow, despite relatively stable revenue, drove free cash flow to a low level. The preceding quarter had substantially higher cash generation, making the current quarter's performance a notable contrast.
Continued weak operating cash flow could constrain free cash flow and liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion from revenue to operating cash flow was lower than the preceding quarter, as operating cash flow represented a smaller portion of revenue. Combined with capital expenditure, free cash flow margin was minimal, similar to the year-ago level.
Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin all declined substantially. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while the margin remained stable.
The sustainability of operating cash flow after a notable sequential decline.