Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior year but increased sequentially. Free cash flow turned from negative to positive, and the margin improved compared with both the prior quarter and the year-ago quarter.
- Operating cash flow improved markedly from a negative figure in the prior quarter to a positive figure, while capital expenditure was lower than both the prior quarter and the year-ago quarter. The resulting free cash flow was positive, and its margin was higher than the year-ago quarter.
- Compared with the previous quarter, operating cash flow and free cash flow both improved substantially, supported by higher revenue and lower capital expenditure. Versus the same quarter last year, revenue was lower but free cash flow was similar, with a slightly higher margin due to lower capital expenditure. The filing notes that the company's liquidity is supported by cash flows from operations and available credit lines.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$806.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$232.0M
Capital spending and related asset purchases.
FCF margin
26.0%
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 | $3.8B | $266.0M | $233.0M | $33.0M | 0.9% |
| 2023-06-30 | $3.6B | $714.0M | $351.0M | $363.0M | 10.1% |
| 2023-09-30 | $3.5B | -$408.0M | $295.0M | -$703.0M | -20.0% |
| 2023-12-31 | $4.3B | $1.3B | $232.0M | $1.1B | 26.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 343.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 recovery
Operating cash flow reversed from a negative figure in the prior quarter to a positive figure, while revenue increased sequentially. This turnaround was the primary factor behind the improvement in free cash flow.
The swing in operating cash flow was the strongest observable driver of free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved markedly from a negative figure in the prior quarter to a positive figure, while capital expenditure was lower than both the prior quarter and the year-ago quarter. The resulting free cash flow was positive, and its margin was higher than the year-ago quarter.
Compared with the previous quarter, operating cash flow and free cash flow both improved substantially, supported by higher revenue and lower capital expenditure. Versus the same quarter last year, revenue was lower but free cash flow was similar, with a slightly higher margin due to lower capital expenditure. The filing notes that the company's liquidity is supported by cash flows from operations and available credit lines.
Capital expenditure levels should be monitored, as the quarter's figure was lower than both the prior quarter and the year-ago quarter.