Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were higher than the same quarter a year ago but lower than the prior quarter, while revenue declined in both comparisons. The filing states that the company expects existing cash and operating cash flow to meet projected capital expenditure and working capital needs.
- Revenue was lower than both the prior quarter and the year-ago quarter, but operating cash flow and free cash flow improved relative to the year-ago period, resulting in a higher free cash flow margin year-over-year. Sequentially, operating cash flow, free cash flow, and margin all weakened.
- Compared to the immediately preceding quarter, every metric including revenue, operating cash flow, capital expenditure, free cash flow, and margin was lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin were higher, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$650.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$232.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$279.2M
Cash generated by operations before capital spending.
CapEx
$46.8M
Capital spending and related asset purchases.
FCF margin
20.3%
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 |
|---|---|---|---|---|---|
| 2022-06-25 | $1.2B | $79.8M | $75.1M | $4.8M | 0.4% |
| 2022-09-24 | $1.1B | $154.1M | $50.1M | $104.0M | 9.1% |
| 2022-12-31 | $1.3B | $368.7M | $59.4M | $309.3M | 23.7% |
| 2023-04-01 | $1.1B | $279.2M | $46.8M | $232.4M | 20.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Operating cash flow improvement
Operating cash flow rose year-over-year despite lower revenue, driving free cash flow and margin higher. This was the strongest observable factor in the quarter's cash conversion performance.
The year-over-year growth in operating cash flow supported higher free cash flow and margin, even as revenue declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, but operating cash flow and free cash flow improved relative to the year-ago period, resulting in a higher free cash flow margin year-over-year. Sequentially, operating cash flow, free cash flow, and margin all weakened.
Compared to the immediately preceding quarter, every metric including revenue, operating cash flow, capital expenditure, free cash flow, and margin was lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin were higher, while capital expenditure was slightly lower.
Monitor capital expenditure levels, which decreased in both the sequential and year-over-year comparisons.