Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow decreased from both the prior quarter and the year-ago quarter, resulting in negative free cash flow. Capital expenditure remained elevated compared to the same quarter last year.
- Free cash flow turned negative as operating cash flow fell more sharply than capital expenditure declined. The free cash flow margin shifted from positive to negative.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter last year, revenue and operating cash flow also decreased, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$172.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$149.0M
Cash generated by operations before capital spending.
CapEx
$321.5M
Capital spending and related asset purchases.
FCF margin
-4.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.4B | $1.6B | $262.6M | $1.3B | 24.6% |
| 2022-09-30 | $5.3B | $888.8M | $353.7M | $535.1M | 10.0% |
| 2022-12-31 | $4.5B | $955.7M | $340.5M | $615.2M | 13.7% |
| 2023-03-31 | $3.6B | $149.0M | $321.5M | -$172.5M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -39.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.9% | 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 Decline
Operating cash flow dropped substantially from both the prior quarter and the year-ago quarter, while capital expenditure did not decrease enough to offset the decline. This was the primary factor behind the negative free cash flow.
The combination of lower operating cash flow and sustained capital expenditure drove free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow turned negative as operating cash flow fell more sharply than capital expenditure declined. The free cash flow margin shifted from positive to negative.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter last year, revenue and operating cash flow also decreased, while capital expenditure was higher.
Monitor the company's liquidity and debt levels given the negative free cash flow and ongoing capital spending.