Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by a substantial increase in operating cash flow. However, compared to the same quarter last year, free cash flow was lower, reflecting a decline in operating cash flow despite slightly lower capital expenditure.
- Revenue was stable compared to the prior quarter, while operating cash flow increased substantially, more than offsetting higher capital expenditure and resulting in sharply higher free cash flow and an improved margin.
- Compared to the prior quarter, free cash flow was higher, supported by a stronger operating cash flow. Compared to the same quarter a year earlier, free cash flow was lower, as operating cash flow decreased while revenue remained similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$728.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$363.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$714.0M
Cash generated by operations before capital spending.
CapEx
$351.0M
Capital spending and related asset purchases.
FCF margin
10.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.9B | -$650.0M | $152.0M | -$802.0M | -20.4% |
| 2022-12-31 | $4.6B | $1.4B | $267.0M | $1.1B | 24.5% |
| 2023-03-31 | $3.8B | $266.0M | $233.0M | $33.0M | 0.9% |
| 2023-06-30 | $3.6B | $714.0M | $351.0M | $363.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1134.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.7% | 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.
Improved operating cash flow
Operating cash flow increased sharply from the prior quarter, providing the primary lift to free cash flow despite a modest rise in capital expenditure.
This improvement was the strongest observable factor behind the quarter's higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow increased substantially, more than offsetting higher capital expenditure and resulting in sharply higher free cash flow and an improved margin.
Compared to the prior quarter, free cash flow was higher, supported by a stronger operating cash flow. Compared to the same quarter a year earlier, free cash flow was lower, as operating cash flow decreased while revenue remained similar.
Monitor the company's temporary shift from bank deposits to government money market funds due to stresses in the global banking system, as disclosed in the filing.