Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company is a high-tech industrial firm operating in aerospace, renewable energy, and power with significant installed bases. Free cash flow was negative in the current period, though it improved compared to the same period last year, while it weakened versus the preceding period.
- Cash conversion was negative as operating cash flow fell short of capital expenditure, resulting in a negative free cash flow margin. The lower revenue contributed to the cash flow shortfall.
- Compared with the preceding quarter, revenue was lower, operating cash flow turned from positive to negative, capital expenditure was higher, and free cash flow moved from a large positive to a negative, weakening the margin. Versus the year-ago period, revenue was lower, operating cash flow improved, capital expenditure was higher, and free cash flow improved though the margin slightly weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$557.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$259.0M
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
-7.9%
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 | $14.9B | $550.0M | $310.0M | $240.0M | 1.6% |
| 2022-09-30 | $14.5B | $1.4B | $252.0M | $1.2B | 8.1% |
| 2022-12-31 | $16.0B | $4.5B | $139.0M | $4.4B | 27.2% |
| 2023-03-31 | $7.0B | -$259.0M | $298.0M | -$557.0M | -7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 decline from prior period
The decline in revenue from the preceding quarter was the strongest observable factor, coinciding with a shift from positive to negative operating cash flow.
This revenue drop was associated with a significant swing in free cash flow from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative as operating cash flow fell short of capital expenditure, resulting in a negative free cash flow margin. The lower revenue contributed to the cash flow shortfall.
Compared with the preceding quarter, revenue was lower, operating cash flow turned from positive to negative, capital expenditure was higher, and free cash flow moved from a large positive to a negative, weakening the margin. Versus the year-ago period, revenue was lower, operating cash flow improved, capital expenditure was higher, and free cash flow improved though the margin slightly weakened.
Monitor the level of capital expenditure relative to operating cash flow, as elevated spending may continue to pressure free cash flow generation.