Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus the prior quarter, while free cash flow fell, compressing the free cash flow margin. Compared to the same quarter last year, revenue was lower, but free cash flow increased on a higher operating cash flow.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin of this quarter was lower than the prior quarter but higher than the same quarter last year, reflecting a mixed conversion pattern across the comparisons.
- Compared to the prior quarter, revenue increased but free cash flow decreased, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue was lower while free cash flow improved, resulting in a strengthened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$639.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$647.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.2B | $1.4B | $477.0M | $927.0M | 22.3% |
| 2023-03-31 | $3.4B | $1.3B | $507.0M | $826.0M | 24.0% |
| 2023-06-30 | $3.1B | $1.6B | $535.0M | $1.0B | 32.7% |
| 2023-09-30 | $3.5B | $1.3B | $647.0M | $639.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
The strongest observable driver this quarter was the higher capital expenditure relative to both the prior quarter and the same quarter last year. Despite a sequential revenue increase, the rise in capital spending absorbed a larger share of operating cash flow, reducing free cash flow.
Higher capital expenditure weakened the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin of this quarter was lower than the prior quarter but higher than the same quarter last year, reflecting a mixed conversion pattern across the comparisons.
Compared to the prior quarter, revenue increased but free cash flow decreased, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue was lower while free cash flow improved, resulting in a strengthened margin.
Monitor the relationship between operating cash flow and capital expenditure, as a lower operating cash flow combined with higher capital expenditure compressed free cash flow this quarter.