Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was stable across all periods, while capital expenditure was lower.
- Operating cash flow as a share of revenue was higher than in the preceding quarter and the year-ago quarter, leading to a stronger free cash flow margin. Capital expenditure consumed a smaller portion of operating cash flow compared with both prior periods.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, and capital expenditure was lower. Revenue was stable in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$767.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$927.0M
Cash generated by operations before capital spending.
CapEx
$160.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $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% |
| 2023-09-30 | $5.1B | $927.0M | $160.0M | $767.0M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Higher Operating Cash Flow
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while revenue remained unchanged. This was the primary factor behind the improvement in free cash flow and free cash flow margin.
Free cash flow margin rose compared with both prior periods, reflecting stronger cash generation from the same revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in the preceding quarter and the year-ago quarter, leading to a stronger free cash flow margin. Capital expenditure consumed a smaller portion of operating cash flow compared with both prior periods.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, and capital expenditure was lower. Revenue was stable in both comparisons.
Monitor whether operating cash flow can sustain its improved level relative to revenue in future quarters.