Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened dramatically due to a sharp decline in operating cash flow, despite lower capital expenditure. Free cash flow margin contracted to a minimal level.
- Operating cash flow decreased substantially, while capital expenditure also fell, resulting in a narrow gap between operating cash flow and free cash flow. Free cash flow margin dropped sharply.
- Revenue was higher than the same quarter last year but lower than the preceding quarter. Cash generation metrics weakened significantly compared to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$71.0M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
0.3%
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 | $3.6B | $676.0M | $77.0M | $599.0M | 16.9% |
| 2022-09-30 | $3.6B | $759.0M | $74.0M | $685.0M | 18.9% |
| 2022-12-31 | $3.8B | $739.0M | $93.0M | $646.0M | 17.0% |
| 2023-03-31 | $3.4B | $71.0M | $62.0M | $9.0M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.0B | 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
Operating cash flow decreased markedly from both the prior quarter and the year-ago period, despite higher revenue year-over-year.
The reduction in operating cash flow drove the contraction in free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased substantially, while capital expenditure also fell, resulting in a narrow gap between operating cash flow and free cash flow. Free cash flow margin dropped sharply.
Revenue was higher than the same quarter last year but lower than the preceding quarter. Cash generation metrics weakened significantly compared to both periods.
Monitor the trajectory of operating cash flow, as its decline is the primary factor behind the weakened free cash flow.