Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow margin weakened from the previous quarter but improved significantly compared to the same quarter last year. The reduction in operating cash flow was the primary factor.
- Revenue was stable, while operating cash flow declined from the prior quarter. Capital expenditure remained relatively stable, leading to a decrease in free cash flow and free cash flow margin.
- Compared to the immediately preceding quarter, revenue edged higher but both operating cash flow and free cash flow were lower, resulting in a narrower margin. Versus the same quarter one year earlier, revenue was stable while operating cash flow and free cash flow were higher, and margin expanded.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$617.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$751.0M
Cash generated by operations before capital spending.
CapEx
$134.0M
Capital spending and related asset purchases.
FCF margin
10.1%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.6B | $887.0M | $95.0M | $792.0M | 14.1% |
| 2023-06-30 | $6.1B | $651.0M | $99.0M | $552.0M | 9.1% |
| 2023-09-30 | $5.9B | $881.0M | $124.0M | $757.0M | 12.8% |
| 2023-12-31 | $6.1B | $751.0M | $134.0M | $617.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $282.0M | 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 Change
Operating cash flow decreased relative to the prior quarter despite a slight increase in revenue, which was the strongest observable driver behind the lower free cash flow.
If operating cash flow continues to weaken, free cash flow may face further pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow declined from the prior quarter. Capital expenditure remained relatively stable, leading to a decrease in free cash flow and free cash flow margin.
Compared to the immediately preceding quarter, revenue edged higher but both operating cash flow and free cash flow were lower, resulting in a narrower margin. Versus the same quarter one year earlier, revenue was stable while operating cash flow and free cash flow were higher, and margin expanded.
Monitor whether operating cash flow can recover from the sequential decline to support free cash flow.