Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared with the same quarter a year ago, driven by higher operating cash flow despite lower revenue. However, both metrics weakened sequentially because the prior quarter's revenue was unusually low, inflating its free cash flow margin.
- Revenue was lower year over year, but operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
- Compared with the preceding quarter, revenue declined substantially, leading to lower operating cash flow and free cash flow, while the free cash flow margin fell from an unusually high level. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were both higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$800.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$475.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $8.7B | $1.1B | $384.0M | $743.0M | 8.5% |
| 2022-09-30 | $8.6B | $1.5B | $435.0M | $1.1B | 12.7% |
| 2022-12-31 | $11.0M | $1.9B | $506.0M | $1.4B | 12872.7% |
| 2023-03-31 | $6.1B | $1.3B | $475.0M | $800.0M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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 Strength
Operating cash flow increased year over year despite lower revenue, providing the primary support for free cash flow and margin expansion.
If operating cash flow remains resilient, free cash flow can be sustained even if revenue does not recover to prior year levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower year over year, but operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
Compared with the preceding quarter, revenue declined substantially, leading to lower operating cash flow and free cash flow, while the free cash flow margin fell from an unusually high level. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were both higher, and the margin improved.
Revenue trajectory should be monitored, as it declined from the prior year while operating cash flow improved, making revenue stability key for future free cash flow.