Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's operating cash flow significantly exceeded revenue, resulting in a free cash flow margin well above the revenue figure. Both operating cash flow and free cash flow improved compared to the prior quarter and the same quarter a year earlier, despite revenue being slightly lower than the year-ago period.
- Operating cash flow was substantially higher than revenue, leading to a free cash flow margin that was also much higher than the revenue figure. Capital expenditure was lower than in both the prior quarter and the year-ago quarter, further supporting free cash flow. The regulatory filing notes that the parent company maintains sufficient liquidity to meet obligations and that a common stock dividend was declared.
- Compared to the prior quarter, revenue was slightly higher, while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year ago, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$976.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$999.0M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
288.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $343.0M | $1.4B | $49.0M | $1.3B | 381.3% |
| 2023-03-31 | $377.0M | $130.0M | $25.0M | $105.0M | 27.9% |
| 2023-06-30 | $332.0M | $630.0M | $32.0M | $598.0M | 180.1% |
| 2023-09-30 | $338.0M | $999.0M | $23.0M | $976.0M | 288.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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 Strength
Operating cash flow increased markedly compared to both the prior quarter and the year-ago quarter, while capital expenditure declined. This combination drove a significant improvement in free cash flow and free cash flow margin.
The higher operating cash flow relative to revenue was the primary factor behind the improved free cash flow metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than revenue, leading to a free cash flow margin that was also much higher than the revenue figure. Capital expenditure was lower than in both the prior quarter and the year-ago quarter, further supporting free cash flow. The regulatory filing notes that the parent company maintains sufficient liquidity to meet obligations and that a common stock dividend was declared.
Compared to the prior quarter, revenue was slightly higher, while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year ago, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were higher.
Monitor the relationship between operating cash flow and revenue in future quarters, as the current period's operating cash flow was substantially higher than revenue.