Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved from the preceding quarter, while capital expenditure remained stable. The free cash flow margin strengthened compared to the prior quarter.
- Revenue was stable versus the prior quarter. Operating cash flow increased, and with capital expenditure roughly unchanged, free cash flow rose, leading to a higher free cash flow margin.
- Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were higher. Capital expenditure was slightly higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$908.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$131.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $4.0B | $728.0M | $113.0M | $615.0M | 15.3% |
| 2023-06-30 | $4.1B | $790.0M | $85.0M | $705.0M | 17.3% |
| 2023-09-30 | $4.0B | $982.0M | $126.0M | $856.0M | 21.2% |
| 2023-12-31 | $4.0B | $1.0B | $131.0M | $908.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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 improved from both the prior quarter and the year-ago quarter, driving higher free cash flow.
This improvement directly supported the rise in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter. Operating cash flow increased, and with capital expenditure roughly unchanged, free cash flow rose, leading to a higher free cash flow margin.
Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were higher. Capital expenditure was slightly higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its improvement relative to the preceding quarter.