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 negative as operating cash flow declined while capital expenditure remained elevated. Revenue was substantially lower compared to both the prior quarter and the same quarter last year.
- Cash conversion weakened as operating cash flow fell relative to revenue, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, all metrics weakened: revenue and operating cash flow declined, capital expenditure increased, and free cash flow shifted from positive to negative.
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
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$515.0M
Cash generated by operations before capital spending.
CapEx
$530.0M
Capital spending and related asset purchases.
FCF margin
-0.8%
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 | $3.2B | $1.3B | $540.0M | $773.0M | 24.4% |
| 2022-12-31 | $4.1B | $1.1B | $524.0M | $526.0M | 12.7% |
| 2023-03-31 | $3.4B | $889.0M | $497.0M | $392.0M | 11.6% |
| 2023-06-30 | $1.9B | $515.0M | $530.0M | -$15.0M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.0% | 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.
Revenue and cash flow decline
Revenue and operating cash flow were substantially lower than both the prior quarter and the year-ago quarter, while capital expenditure increased.
This combination led to negative free cash flow and a negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow fell relative to revenue, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, all metrics weakened: revenue and operating cash flow declined, capital expenditure increased, and free cash flow shifted from positive to negative.
Monitor the relationship between operating cash flow and capital expenditure to assess the potential for returning to positive free cash flow.