Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter, but operating cash flow increased, resulting in a stronger free cash flow margin. Free cash flow was higher than both the preceding quarter and the same quarter one year earlier.
- Operating cash flow significantly exceeded capital expenditure, yielding a free cash flow margin that improved from the previous quarter and the year-ago period. The conversion of revenue into free cash flow strengthened.
- Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened. Versus the year-ago quarter, revenue was slightly higher, operating cash flow improved, and free cash flow grew, with the margin also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$925.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$84.9M
Capital spending and related asset purchases.
FCF margin
38.1%
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 | $2.5B | $819.2M | $73.2M | $746.1M | 30.0% |
| 2022-09-30 | $2.7B | $1.0B | $84.4M | $927.2M | 34.0% |
| 2022-12-31 | $3.0B | $688.3M | $93.6M | $594.6M | 19.9% |
| 2023-03-31 | $2.4B | $1.0B | $84.9M | $925.9M | 38.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved operating cash flow
Operating cash flow increased compared to both the prior quarter and the same quarter last year, even as revenue declined from the prior quarter. This was the primary factor behind the higher free cash flow and margin.
The stronger operating cash flow enabled the company to generate more free cash flow while capital expenditure remained lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow significantly exceeded capital expenditure, yielding a free cash flow margin that improved from the previous quarter and the year-ago period. The conversion of revenue into free cash flow strengthened.
Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, and the free cash flow margin strengthened. Versus the year-ago quarter, revenue was slightly higher, operating cash flow improved, and free cash flow grew, with the margin also higher.
The filing notes increases in accounts receivable and inventories, a trend to monitor.