Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fourth quarter, free cash flow increased from the prior quarter but decreased from the same quarter last year. The free cash flow margin improved sequentially but weakened year over year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than a year ago. Capital expenditure was higher than both comparison periods. Free cash flow and margin followed the pattern of operating cash flow.
- Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter last year, free cash flow and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$692.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$448.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$562.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $2.7B | -$9.0M | $43.0M | -$52.0M | -1.9% |
| 2023-06-30 | $2.8B | $82.0M | $68.0M | $14.0M | 0.5% |
| 2023-09-30 | $2.8B | $335.0M | $53.0M | $282.0M | 10.0% |
| 2023-12-31 | $3.2B | $562.0M | $114.0M | $448.0M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 was higher than the prior quarter, supporting a higher free cash flow despite increased capital expenditure.
The improvement in operating cash flow drove the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than a year ago. Capital expenditure was higher than both comparison periods. Free cash flow and margin followed the pattern of operating cash flow.
Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter last year, free cash flow and margin weakened.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter.