Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved strongly versus the prior year period, while both declined slightly from the preceding quarter. Revenue was stable sequentially and slightly lower than a year ago.
- Operating cash flow remained robust, offsetting modest capital expenditure to deliver a healthy free cash flow margin. A lower operating cash flow relative to the prior quarter was the primary reason for the sequential decline in free cash flow.
- Compared to the prior year quarter, all cash flow measures improved, with free cash flow and margin showing notable strengthening. Versus the immediate preceding quarter, operating cash flow and free cash flow were slightly lower, while capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$880.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$959.1M
Cash generated by operations before capital spending.
CapEx
$78.7M
Capital spending and related asset purchases.
FCF margin
37.4%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $2.4B | $959.1M | $78.7M | $880.4M | 37.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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 strength
Despite a slight sequential dip, operating cash flow remained at a high level, driving a free cash flow margin well above the prior year period. The improvement from a year ago is the most notable observable driver.
Strong cash generation supports ongoing investment in capital expenditures while returning value to shareholders.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained robust, offsetting modest capital expenditure to deliver a healthy free cash flow margin. A lower operating cash flow relative to the prior quarter was the primary reason for the sequential decline in free cash flow.
Compared to the prior year quarter, all cash flow measures improved, with free cash flow and margin showing notable strengthening. Versus the immediate preceding quarter, operating cash flow and free cash flow were slightly lower, while capital expenditure was slightly lower.
Monitor whether operating cash flow can sustain its current level after the sequential decline from the prior quarter.