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 significantly compared to both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue was lower than the prior quarter but higher than the year-ago period.
- Operating cash flow rose sharply while capital expenditure declined sequentially, resulting in a much higher free cash flow and margin. The conversion of revenue into cash strengthened markedly.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Versus the same quarter last year, all metrics were higher except capital expenditure, which was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$792.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$887.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $5.3B | $650.0M | $70.0M | $580.0M | 10.9% |
| 2022-09-30 | $5.3B | $874.0M | $73.0M | $801.0M | 15.1% |
| 2022-12-31 | $5.9B | $441.0M | $140.0M | $301.0M | 5.1% |
| 2023-03-31 | $5.6B | $887.0M | $95.0M | $792.0M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $498.0M | 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 Surge
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, while capital expenditure declined sequentially. This combination drove a strong improvement in free cash flow and margin.
The enhanced cash generation strengthens the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply while capital expenditure declined sequentially, resulting in a much higher free cash flow and margin. The conversion of revenue into cash strengthened markedly.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Versus the same quarter last year, all metrics were higher except capital expenditure, which was higher.
Monitor capital expenditure levels in upcoming quarters, as they directly affect free cash flow.