Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved markedly compared with both the prior quarter and the same period last year, driven by a strong increase in operating cash flow. Revenue remained stable across all periods.
- With revenue unchanged, the notable rise in operating cash flow lifted free cash flow, widening the free cash flow margin considerably.
- Relative to the preceding quarter, free cash flow and margin were higher while capital expenditure also increased. Versus the same period one year earlier, free cash flow and margin improved substantially, supported by stronger operating cash flow and lower capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$469.0M
Capital spending and related asset purchases.
FCF margin
42.0%
The share of revenue converted into free cash flow.
TTM FCF yield
15.0%
TTM FCF divided by market capitalization.
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 | $2.4B | $632.0M | $193.0M | $439.0M | 18.3% |
| 2023-06-30 | $2.4B | $1.1B | $197.0M | $890.0M | 36.7% |
| 2023-09-30 | $2.5B | $1.1B | $215.0M | $876.0M | 35.2% |
| 2023-12-31 | $2.5B | $1.5B | $469.0M | $1.1B | 42.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 425.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.9B | 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 strength
Operating cash flow rose sharply from both the prior quarter and the year-ago period, providing the primary lift to free cash flow despite a moderate increase in capital expenditure.
The robust operating cash flow supported a substantial improvement in free cash flow and margin, enhancing financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, the notable rise in operating cash flow lifted free cash flow, widening the free cash flow margin considerably.
Relative to the preceding quarter, free cash flow and margin were higher while capital expenditure also increased. Versus the same period one year earlier, free cash flow and margin improved substantially, supported by stronger operating cash flow and lower capital spending.
Monitor future capital expenditure levels and the company's cash deployment strategy following the completion of the Worldpay sale as described in the filing.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $21.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 15.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 10.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.