Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter, but operating cash flow declined, resulting in lower free cash flow and a weakened margin. Compared to the same quarter last year, all metrics were significantly lower.
- Revenue rose while operating cash flow fell, reducing the free cash flow margin to a level below both the prior quarter and the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
- Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, all metrics were lower and the margin was weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$147.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$158.4M
Cash generated by operations before capital spending.
CapEx
$10.7M
Capital spending and related asset purchases.
FCF margin
6.5%
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 | $2.6B | $546.4M | $10.1M | $536.3M | 20.7% |
| 2023-06-30 | $2.2B | $158.4M | $10.5M | $148.0M | 6.6% |
| 2023-09-30 | $2.2B | $190.0M | $8.0M | $182.0M | 8.3% |
| 2023-12-31 | $2.3B | $158.4M | $10.7M | $147.6M | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Cash Conversion Weakened
Operating cash flow declined relative to revenue, driving the free cash flow margin lower. The filing attributes this to lower net earnings and working capital changes from a slowdown in operations and declining sell and buy rates.
The weaker cash conversion reduces the cushion for capital spending and liquidity, warranting attention to the pace of operational recovery.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, reducing the free cash flow margin to a level below both the prior quarter and the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than a year ago.
Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, all metrics were lower and the margin was weakened.
Monitor changes in working capital and the trend in sell and buy rates as described in the management discussion.