Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased slightly both sequentially and compared to the same quarter last year. Operating cash flow and free cash flow improved year-over-year but weakened from the prior quarter.
- Free cash flow margin, at over a fifth of revenue, was higher than the prior year but lower than the prior quarter.
- Compared to the previous quarter, all cash flow metrics declined. Versus the same quarter one year earlier, cash generation strengthened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$626.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$179.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$201.0M
Cash generated by operations before capital spending.
CapEx
$21.6M
Capital spending and related asset purchases.
FCF margin
22.7%
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 | $845.4M | $147.9M | $26.6M | $121.3M | 14.3% |
| 2023-06-30 | $846.2M | $141.2M | $21.6M | $119.6M | 14.1% |
| 2023-09-30 | $793.4M | $226.6M | $20.1M | $206.5M | 26.0% |
| 2023-12-31 | $788.9M | $201.0M | $21.6M | $179.4M | 22.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$799.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved year-over-year cash generation
Operating cash flow and free cash flow improved markedly compared to the same quarter last year, even though revenue was slightly lower. The company noted strong operating performance amid volume declines.
The year-over-year improvement in cash flow supported higher free cash flow despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin, at over a fifth of revenue, was higher than the prior year but lower than the prior quarter.
Compared to the previous quarter, all cash flow metrics declined. Versus the same quarter one year earlier, cash generation strengthened significantly.
Monitor whether operating cash flow can sustain or improve after the sequential decline.