Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all declined compared to the prior quarter and the same quarter last year. The free cash flow margin weakened significantly from the year-ago level.
- Operating cash flow of the current quarter was lower than the prior quarter and the year-ago quarter, while capital expenditure also decreased. The resulting free cash flow and free cash flow margin were both lower than the comparable periods, indicating a weakened cash conversion from revenue.
- Compared to the immediately preceding quarter, all metrics were lower. The year-ago quarter showed substantially higher revenue, operating cash flow, free cash flow, and margin, making the current quarter's performance weaker on both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$179.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$538.1M
Cash generated by operations before capital spending.
CapEx
$358.9M
Capital spending and related asset purchases.
FCF margin
5.7%
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 | $3.6B | $149.0M | $321.5M | -$172.5M | -4.8% |
| 2023-06-30 | $3.4B | $1.1B | $310.3M | $762.4M | 22.5% |
| 2023-09-30 | $3.5B | $647.4M | $411.7M | $235.7M | 6.6% |
| 2023-12-31 | $3.1B | $538.1M | $358.9M | $179.2M | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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.
Revenue decline
The current quarter's revenue was lower than the prior quarter and the year-ago quarter, which directly reduced operating cash flow and free cash flow. This is the strongest observable driver of the weaker cash generation.
Lower revenue led to proportionally lower operating cash flow and free cash flow, resulting in a weakened 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 of the current quarter was lower than the prior quarter and the year-ago quarter, while capital expenditure also decreased. The resulting free cash flow and free cash flow margin were both lower than the comparable periods, indicating a weakened cash conversion from revenue.
Compared to the immediately preceding quarter, all metrics were lower. The year-ago quarter showed substantially higher revenue, operating cash flow, free cash flow, and margin, making the current quarter's performance weaker on both comparisons.
Monitor the company's management of capital expenditures and strategic initiatives, as the filing notes that ineffective management could cause costs to exceed expectations.