Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter, despite a higher revenue base than the year-ago period.
- Compared to the prior quarter, revenue was slightly lower and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher but free cash flow margin was lower, with operating cash flow lower and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$589.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$852.5M
Cash generated by operations before capital spending.
CapEx
$262.6M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $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% |
| 2023-12-31 | $3.9B | $852.5M | $262.6M | $589.9M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the immediately preceding quarter and the same quarter one year earlier. This was the strongest observable driver of the decline in free cash flow relative to both periods.
Higher capital expenditure reduced free cash flow despite operating cash flow being higher than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter, despite a higher revenue base than the year-ago period.
Compared to the prior quarter, revenue was slightly lower and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher but free cash flow margin was lower, with operating cash flow lower and capital expenditure higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.