Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above ninety percent. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow was higher than revenue, leading to a free cash flow margin above ninety percent. Capital expenditure absorbed a portion of operating cash flow, but free cash flow remained substantial.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$560.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$719.0M
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
98.1%
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 | $505.0M | $1.0B | $191.0M | $832.0M | 164.8% |
| 2022-09-30 | $500.0M | $1.2B | $125.0M | $1.1B | 224.2% |
| 2022-12-31 | $567.0M | $622.0M | $223.0M | $399.0M | 70.4% |
| 2023-03-31 | $571.0M | $719.0M | $159.0M | $560.0M | 98.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 149.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.8% | 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.
Strong operating cash flow generation
Operating cash flow was higher than revenue, driving a free cash flow margin above ninety percent. This was the strongest observable driver of the quarter's performance.
It enabled free cash flow to be higher than both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than revenue, leading to a free cash flow margin above ninety percent. Capital expenditure absorbed a portion of operating cash flow, but free cash flow remained substantial.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor the relationship between operating cash flow and revenue, as operating cash flow exceeded revenue this quarter.