Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position a year earlier, though it decreased compared to the prior quarter. The cash conversion rate weakened sequentially as operating cash flow declined more than capital expenditure.
- Revenue was lower than the prior quarter, while operating cash flow also decreased, resulting in a lower free cash flow margin. Capital expenditure was reduced, but the decline in operating cash flow had a larger impact on free cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow improved significantly from a negative figure to a positive one, and margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$819.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$136.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.0M
Cash generated by operations before capital spending.
CapEx
$105.0M
Capital spending and related asset purchases.
FCF margin
2.0%
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 | $7.5B | -$1.6B | $142.0M | -$1.7B | -23.2% |
| 2023-06-30 | $6.2B | $570.0M | $182.0M | $388.0M | 6.2% |
| 2023-09-30 | $7.9B | $566.0M | $169.0M | $397.0M | 5.1% |
| 2023-12-31 | $6.7B | $241.0M | $105.0M | $136.0M | 2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 Recovery
Operating cash flow shifted from a large negative amount a year ago to a positive figure this quarter, which was the strongest observable driver of the improvement in free cash flow.
This recovery enabled free cash flow to turn positive, reversing the prior-year deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow also decreased, resulting in a lower free cash flow margin. Capital expenditure was reduced, but the decline in operating cash flow had a larger impact on free cash flow.
Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow improved significantly from a negative figure to a positive one, and margin turned positive.
Monitor whether operating cash flow can sustain its positive level, as it is the primary driver of free cash flow.