Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Operating cash flow rose more than revenue, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and its margin were both higher. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$787.7M
Cash generated by operations before capital spending.
CapEx
$166.5M
Capital spending and related asset purchases.
FCF margin
15.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $3.7B | $859.2M | $202.8M | $656.4M | 17.9% |
| 2023-03-31 | $3.6B | $198.2M | $173.7M | $24.5M | 0.7% |
| 2023-06-30 | $3.9B | $573.4M | $172.0M | $401.4M | 10.4% |
| 2023-09-30 | $4.0B | $787.7M | $166.5M | $621.2M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Strong Operating Cash Flow Growth
Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, outpacing revenue growth. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow, combined with lower capital expenditure, directly lifted free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and its margin were both higher. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower.
Monitor whether the net debt to EBITDA ratio continues to decline from the prior year-end level, as indicated in the filing.