Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive as operating cash flow exceeded capital expenditure, yielding a positive margin. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, and free cash flow and margin also weakened.
- Operating cash flow as a proportion of revenue was higher than the previous quarter, and capital expenditure was lower, resulting in positive free cash flow. The free cash flow margin reflected this improved conversion.
- Relative to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$333.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$282.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$836.5M
Cash generated by operations before capital spending.
CapEx
$553.7M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $1.2B | $324.2M | $551.9M | -$227.7M | -18.5% |
| 2023-03-31 | $1.2B | $362.9M | $527.7M | -$164.8M | -13.2% |
| 2023-06-30 | $1.3B | $352.3M | $576.5M | -$224.2M | -17.1% |
| 2023-09-30 | $1.6B | $836.5M | $553.7M | $282.8M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved cash conversion
Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, leading to a positive free cash flow.
This reversed the negative free cash flow seen in the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the previous quarter, and capital expenditure was lower, resulting in positive free cash flow. The free cash flow margin reflected this improved conversion.
Relative to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all declined.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it was higher than the prior year quarter.