Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened significantly compared to the prior quarter, as operating cash flow and free cash flow both increased while revenue was slightly lower. Versus the same period last year, free cash flow and margin declined despite stable revenue.
- Revenue was stable, but operating cash flow was higher than capital expenditure, resulting in positive free cash flow and a margin that improved from the prior quarter. The conversion rate from operating cash flow to free cash flow was supported by the moderate investment in capital expenditure.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the margin improved markedly. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$460.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$376.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$509.0M
Cash generated by operations before capital spending.
CapEx
$133.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $2.7B | $324.0M | $184.0M | $140.0M | 5.2% |
| 2022-09-30 | $2.5B | -$31.0M | $104.0M | -$135.0M | -5.4% |
| 2022-12-31 | $2.5B | $192.0M | $113.0M | $79.0M | 3.1% |
| 2023-03-31 | $2.4B | $509.0M | $133.0M | $376.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 752.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 rose substantially from the prior quarter, driving the increase in free cash flow and margin. This was the strongest observable factor supporting performance in the current quarter.
Higher operating cash flow directly improved free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was higher than capital expenditure, resulting in positive free cash flow and a margin that improved from the prior quarter. The conversion rate from operating cash flow to free cash flow was supported by the moderate investment in capital expenditure.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the margin improved markedly. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin weakened.
Monitor capital expenditure trends as the level increased from both the prior quarter and the year-ago quarter, which could affect future free cash flow conversion.