Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and the year-ago quarter, while free cash flow margin improved sequentially but weakened year-over-year. Operating cash flow was lower than the year-ago period but higher than the preceding quarter.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from a year ago. Capital expenditure was lower than both comparison periods. Free cash flow rose sequentially but fell year-over-year, and the free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were higher. Compared to the same quarter a year ago, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$793.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$853.3M
Cash generated by operations before capital spending.
CapEx
$59.5M
Capital spending and related asset purchases.
FCF margin
45.0%
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 | $2.2B | $709.5M | $112.7M | $596.8M | 26.7% |
| 2023-06-30 | $2.3B | $993.2M | $111.1M | $882.1M | 38.5% |
| 2023-09-30 | $2.3B | $616.2M | $74.4M | $541.8M | 24.0% |
| 2023-12-31 | $1.8B | $853.3M | $59.5M | $793.8M | 45.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 189.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Improvement
The free cash flow margin increased from the prior quarter, driven by a combination of higher operating cash flow and lower capital expenditure relative to revenue. This occurred despite a decline in revenue.
The sequential improvement in free cash flow margin indicates a stronger conversion of revenue into free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from a year ago. Capital expenditure was lower than both comparison periods. Free cash flow rose sequentially but fell year-over-year, and the free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were higher. Compared to the same quarter a year ago, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow and its margin were lower.
Monitor the trend in revenue, as it declined from both the prior quarter and the year-ago quarter.