Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow relative to revenue. Revenue was lower than the prior quarter, but free cash flow increased substantially.
- Revenue was lower than the prior quarter, yet operating cash flow was higher, resulting in stronger cash conversion. Free cash flow margin was elevated as capital expenditure was slightly reduced compared to both comparison periods.
- Compared to the preceding quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter one year earlier, all cash flow metrics and margin were higher, despite revenue being lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$801.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$958.5M
Cash generated by operations before capital spending.
CapEx
$157.3M
Capital spending and related asset purchases.
FCF margin
503.3%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $2.3B | $599.5M | $162.2M | $437.3M | 19.1% |
| 2023-06-30 | $2.5B | $565.0M | $168.8M | $396.1M | 16.2% |
| 2023-09-30 | $2.5B | $426.8M | $169.8M | $257.0M | 10.4% |
| 2023-12-31 | $159.2M | $958.5M | $157.3M | $801.2M | 503.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 98.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.3B | 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 was higher than both the prior quarter and the same quarter last year, despite lower revenue. This was the strongest observable driver behind free cash flow improvement.
Free cash flow and its margin were substantially higher than in the two comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, yet operating cash flow was higher, resulting in stronger cash conversion. Free cash flow margin was elevated as capital expenditure was slightly reduced compared to both comparison periods.
Compared to the preceding quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter one year earlier, all cash flow metrics and margin were higher, despite revenue being lower.
Monitor the relationship between operating cash flow and capital expenditure to assess sustainability of the elevated free cash flow margin.