Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
IQVIA's free cash flow weakened in the March quarter, as operating cash flow declined relative to both the prior quarter and the same quarter a year earlier. Revenue remained stable compared to the previous quarter and was higher year over year.
- Revenue held steady from the prior quarter but improved versus the prior year, while operating cash flow and free cash flow both decreased from both comparison periods. The free cash flow margin narrowed accordingly, indicating a weakened conversion of revenue into cash.
- Compared with the preceding quarter, free cash flow and its margin were lower. Versus the same quarter one year earlier, free cash flow and margin were also lower, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$253.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$417.0M
Cash generated by operations before capital spending.
CapEx
$164.0M
Capital spending and related asset purchases.
FCF margin
6.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.5B | $329.0M | $161.0M | $168.0M | 4.7% |
| 2022-09-30 | $3.6B | $863.0M | $165.0M | $698.0M | 19.6% |
| 2022-12-31 | $3.7B | $560.0M | $171.0M | $389.0M | 10.4% |
| 2023-03-31 | $3.7B | $417.0M | $164.0M | $253.0M | 6.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.7B | 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 Decline
The reduction in operating cash flow drove the lower free cash flow, as capital expenditure decreased only modestly. Revenue was stable sequentially and higher year on year, yet cash generation weakened.
Lower operating cash flow reduced the free cash flow margin and may constrain near-term cash flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady from the prior quarter but improved versus the prior year, while operating cash flow and free cash flow both decreased from both comparison periods. The free cash flow margin narrowed accordingly, indicating a weakened conversion of revenue into cash.
Compared with the preceding quarter, free cash flow and its margin were lower. Versus the same quarter one year earlier, free cash flow and margin were also lower, despite higher revenue.
Monitor the trajectory of operating cash flow, as it is the primary source of liquidity and has declined in the most recent period.