Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved compared to the prior quarter and the same quarter last year, while free cash flow declined from the prior quarter but rose substantially from a year earlier. The free cash flow margin weakened from the prior quarter but improved significantly versus the same quarter last year.
- Revenue increased from both the prior quarter and the same quarter last year. Operating cash flow rose, but a higher capital expenditure relative to the prior quarter reduced the conversion to free cash flow, resulting in a lower free cash flow margin compared to the prior quarter.
- Relative to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and free cash flow margin were lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$387.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$715.9M
Cash generated by operations before capital spending.
CapEx
$328.8M
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $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% |
| 2023-12-31 | $4.4B | $715.9M | $328.8M | $387.2M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 Growth
Operating cash flow rose sequentially and year-over-year, supporting higher free cash flow compared to the same quarter last year. The filing context notes interest and dividend income increased, though foreign currency transaction losses also increased.
Higher operating cash flow provided a stronger cash generation base, though offset partly by increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the same quarter last year. Operating cash flow rose, but a higher capital expenditure relative to the prior quarter reduced the conversion to free cash flow, resulting in a lower free cash flow margin compared to the prior quarter.
Relative to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow and free cash flow margin were lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between operating cash flow and capital expenditure, as the increase in capital spending reduced free cash flow conversion this quarter.