Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior year but higher than the previous quarter. Free cash flow turned positive from a negative position in the prior quarter and remained near the year-ago level, with an improved margin.
- Operating cash flow increased substantially from the prior quarter, driving a strong free cash flow conversion despite higher capital expenditure. The free cash flow margin improved compared to both the prior quarter and the same quarter last year. The filing notes a decrease in cash and cash investments and an increase in receivables compared to year-end, while the current ratio improved.
- Compared to the prior quarter, operating cash flow and free cash flow both improved significantly, while revenue was slightly higher. Versus the same quarter last year, revenue was lower, but free cash flow was only slightly lower and the margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$827.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$343.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$415.0M
Cash generated by operations before capital spending.
CapEx
$72.0M
Capital spending and related asset purchases.
FCF margin
16.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $2.2B | $346.0M | $67.0M | $279.0M | 12.7% |
| 2022-12-31 | $1.9B | $320.0M | $87.0M | $233.0M | 12.1% |
| 2023-03-31 | $2.0B | $33.0M | $61.0M | -$28.0M | -1.4% |
| 2023-06-30 | $2.1B | $415.0M | $72.0M | $343.0M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Operating cash flow recovery
Operating cash flow rebounded sharply from the prior quarter's low level, becoming the primary driver of the positive free cash flow. This improvement occurred even as revenue was only modestly higher.
The strong operating cash flow enabled the company to generate substantial free cash flow despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter, driving a strong free cash flow conversion despite higher capital expenditure. The free cash flow margin improved compared to both the prior quarter and the same quarter last year. The filing notes a decrease in cash and cash investments and an increase in receivables compared to year-end, while the current ratio improved.
Compared to the prior quarter, operating cash flow and free cash flow both improved significantly, while revenue was slightly higher. Versus the same quarter last year, revenue was lower, but free cash flow was only slightly lower and the margin was higher.
Monitor the trend in capital expenditure, which increased compared to both the prior quarter and the year-ago period.