Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed improved cash generation with higher revenue and operating cash flow, resulting in a stronger free cash flow margin compared to both the prior quarter and the same quarter last year.
- Revenue and operating cash flow both increased from the prior quarter, while capital expenditure also rose; free cash flow margin strengthened, indicating more efficient conversion of revenue into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Relative to the same quarter last year, all metrics were also higher and margins improved.
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
$568.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$747.0M
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
14.7%
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 | $3.7B | $417.0M | $164.0M | $253.0M | 6.9% |
| 2023-06-30 | $3.7B | $402.0M | $160.0M | $242.0M | 6.5% |
| 2023-09-30 | $3.7B | $583.0M | $146.0M | $437.0M | 11.7% |
| 2023-12-31 | $3.9B | $747.0M | $179.0M | $568.0M | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Conversion from Operations
Operating cash flow grew at a faster pace than revenue, driving a higher free cash flow margin and strengthening overall cash generation.
The improved free cash flow margin supports stronger liquidity without relying on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased from the prior quarter, while capital expenditure also rose; free cash flow margin strengthened, indicating more efficient conversion of revenue into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Relative to the same quarter last year, all metrics were also higher and margins improved.
Monitor the trend in capital expenditure as it increased this quarter, which could affect future free cash flow levels.