Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Invesco's free cash flow and margin improved sequentially, driven by higher operating cash flow and lower capital expenditure. However, both measures were lower compared to the same quarter one year earlier, when operating cash flow was significantly higher.
- Revenue was stable across all periods. Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure was lower than both. As a result, free cash flow and free cash flow margin improved sequentially but weakened year-over-year.
- Compared to the prior quarter, operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and margin. Versus the year-ago quarter, operating cash flow was lower despite similar revenue, and capital expenditure was also lower, resulting in lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$852.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$314.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$354.1M
Cash generated by operations before capital spending.
CapEx
$39.2M
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.4B | $463.5M | $73.1M | $390.4M | 27.0% |
| 2023-03-31 | $1.4B | -$98.9M | $38.1M | -$137.0M | -9.7% |
| 2023-06-30 | $1.4B | $331.3M | $46.7M | $284.6M | 19.7% |
| 2023-09-30 | $1.4B | $354.1M | $39.2M | $314.9M | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 239.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$247.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Growth
Operating cash flow rose from the prior quarter while capital expenditure fell, lifting free cash flow and margin. This was the strongest observable driver of the sequential improvement.
The increase in operating cash flow, combined with lower capital expenditure, reversed the previous quarter's trends and elevated free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable across all periods. Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure was lower than both. As a result, free cash flow and free cash flow margin improved sequentially but weakened year-over-year.
Compared to the prior quarter, operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and margin. Versus the year-ago quarter, operating cash flow was lower despite similar revenue, and capital expenditure was also lower, resulting in lower free cash flow and margin.
Monitor capital expenditure levels, as they declined from both the prior quarter and the year-ago quarter, which directly contributed to the sequential free cash flow improvement.