Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated lower free cash flow compared to both the prior quarter and the same quarter last year, driven by a decline in operating cash flow despite reduced capital spending. Free cash flow margin weakened as a result.
- Operating cash flow decreased from both the previous quarter and the year-ago quarter, leading to a lower free cash flow even though capital expenditure was also lower. The free cash flow margin contracted.
- Compared to the preceding quarter and the same quarter one year earlier, free cash flow and its margin were lower. Operating cash flow weakened, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$888.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$192.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.0M
Cash generated by operations before capital spending.
CapEx
$5.8M
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.0B | $269.9M | $12.4M | $257.5M | 24.9% |
| 2022-12-31 | $1.0B | $208.0M | $17.1M | $190.9M | 18.4% |
| 2023-03-31 | $1.0B | $270.3M | $22.8M | $247.5M | 23.9% |
| 2023-06-30 | $1.0B | $198.0M | $5.8M | $192.2M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 232.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Lower operating cash flow
Operating cash flow declined relative to both the prior quarter and the same quarter a year ago, which was the most significant observable factor behind the drop in free cash flow. Capital expenditure also decreased but did not offset the reduction in operating cash flow.
The decline in operating cash flow directly weakened free cash flow and compressed its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from both the previous quarter and the year-ago quarter, leading to a lower free cash flow even though capital expenditure was also lower. The free cash flow margin contracted.
Compared to the preceding quarter and the same quarter one year earlier, free cash flow and its margin were lower. Operating cash flow weakened, while capital expenditure was lower.
Monitor whether operating cash flow can stabilize or improve, as it is the primary driver of free cash flow.