Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved from the prior quarter, driven by a higher operating cash flow relative to revenue. Compared to the same quarter a year earlier, the margin was lower, as operating cash flow decreased while revenue increased.
- Operating cash flow was high relative to revenue, and capital expenditure was low, resulting in strong free cash flow and a high free cash flow margin.
- Compared to the prior quarter, free cash flow and margin improved substantially, with operating cash flow rising more than revenue. Compared to the same quarter last year, free cash flow was stable, but the margin was lower as revenue grew while operating cash flow declined.
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
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
40.9%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $2.2B | -$8.0M | $54.0M | -$62.0M | -2.9% |
| 2023-07-01 | $2.4B | $93.0M | $53.0M | $40.0M | 1.7% |
| 2023-09-30 | $2.6B | $714.0M | $65.0M | $649.0M | 25.4% |
| 2023-12-31 | $2.8B | $1.2B | $81.0M | $1.2B | 40.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.3B | 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 Improvement
Operating cash flow in the current quarter was higher than the prior quarter, which drove the improvement in free cash flow and margin.
The higher operating cash flow was the primary factor behind the sequential improvement in cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was high relative to revenue, and capital expenditure was low, resulting in strong free cash flow and a high free cash flow margin.
Compared to the prior quarter, free cash flow and margin improved substantially, with operating cash flow rising more than revenue. Compared to the same quarter last year, free cash flow was stable, but the margin was lower as revenue grew while operating cash flow declined.
The filing discusses cash repatriation from international jurisdictions; monitor the impact on future liquidity and cash flows.