Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was stable relative to the year-ago period, while capital expenditure decreased.
- Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the preceding quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$599.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$787.0M
Cash generated by operations before capital spending.
CapEx
$188.0M
Capital spending and related asset purchases.
FCF margin
11.7%
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 | $5.1B | $798.0M | $209.0M | $589.0M | 11.7% |
| 2022-12-31 | $5.0B | $991.0M | $197.0M | $794.0M | 16.0% |
| 2023-03-31 | $5.2B | $613.0M | $201.0M | $412.0M | 7.9% |
| 2023-06-30 | $5.1B | $787.0M | $188.0M | $599.0M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 587.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred even as revenue was stable or slightly lower.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the preceding quarter and the year-ago quarter.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and free cash flow improved.
Monitor whether operating cash flow can sustain its improved level relative to revenue in future quarters.