Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased, leading to higher free cash flow and margin. The quarter showed improved cash conversion compared to both the prior quarter and the same quarter last year.
- Operating cash flow rose while capital expenditure decreased, resulting in a notable increase in free cash flow margin.
- Compared to the immediate prior quarter, free cash flow and margin were higher; versus the year-ago quarter, all metrics improved, with operating cash flow and free cash flow significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$484.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$694.1M
Cash generated by operations before capital spending.
CapEx
$209.8M
Capital spending and related asset purchases.
FCF margin
12.2%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $3.6B | $423.2M | $308.5M | $114.7M | 3.2% |
| 2023-03-31 | $3.9B | $704.1M | $139.8M | $564.2M | 14.6% |
| 2023-06-30 | $3.9B | $576.7M | $253.5M | $323.2M | 8.2% |
| 2023-09-30 | $4.0B | $694.1M | $209.8M | $484.3M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 300.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 Strength
Operating cash flow increased from the prior quarter and year-ago period, while capital expenditure remained stable, boosting free cash flow.
The stronger operating cash flow was the clearest factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure decreased, resulting in a notable increase in free cash flow margin.
Compared to the immediate prior quarter, free cash flow and margin were higher; versus the year-ago quarter, all metrics improved, with operating cash flow and free cash flow significantly higher.
Monitor the trajectory of operating cash flow relative to revenue, as it was the primary driver of the margin improvement.