Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply in the current quarter compared to both the prior quarter and the same quarter last year. The decline was driven by lower operating cash flow and higher capital expenditure.
- Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased significantly, while capital expenditure increased, resulting in a much lower free cash flow and free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$153.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$673.0M
Cash generated by operations before capital spending.
CapEx
$520.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.3B | $1.4B | $445.0M | $968.0M | 29.0% |
| 2022-12-31 | $3.2B | $798.0M | $666.0M | $132.0M | 4.1% |
| 2023-03-31 | $3.1B | $1.2B | $428.0M | $745.0M | 23.8% |
| 2023-06-30 | $3.0B | $673.0M | $520.0M | $153.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | 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.
Operating Cash Flow Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter. This was the strongest observable driver of the reduced free cash flow.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased significantly, while capital expenditure increased, resulting in a much lower free cash flow and free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter last year, operating cash flow and free cash flow were also lower, with capital expenditure higher.
Monitor the trend in operating cash flow, as its decline was the primary observable factor in the weakened cash conversion.