Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow decreased, leading to a weakened free cash flow margin.
- Cash conversion weakened as operating cash flow was lower despite stable revenue, and capital expenditure was also lower. This resulted in a free cash flow margin that declined compared to both prior periods.
- Compared to the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow decreased, with free cash flow margin declining. Relative to the same quarter a year earlier, revenue was stable but operating cash flow and free cash flow were lower, resulting in a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$439.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$632.0M
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
18.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.8B | $1.0B | $340.0M | $684.0M | 14.1% |
| 2022-09-30 | -$16.0M | $878.0M | $233.0M | $645.0M | -4031.3% |
| 2022-12-31 | $2.5B | $1.1B | $564.0M | $577.0M | 22.8% |
| 2023-03-31 | $2.4B | $632.0M | $193.0M | $439.0M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 288.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.2B | 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 Decline
Operating cash flow was lower compared to both the prior quarter and the year-ago quarter, driving the decrease in free cash flow even as capital expenditure also fell.
Continued weakness in operating cash flow could further pressure free cash flow generation.
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 was lower despite stable revenue, and capital expenditure was also lower. This resulted in a free cash flow margin that declined compared to both prior periods.
Compared to the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow decreased, with free cash flow margin declining. Relative to the same quarter a year earlier, revenue was stable but operating cash flow and free cash flow were lower, resulting in a lower margin.
Monitor the trend of operating cash flow, which declined notably despite stable revenue and lower capital expenditure.