Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter due to higher operating cash flow and lower capital expenditure, though it remained below the prior year period. The free cash flow margin strengthened sequentially but weakened compared to the same quarter last year.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher than the prior quarter but lower than the year-ago quarter. Free cash flow margin improved sequentially but declined year over year, reflecting the combined effect of changes in operating cash flow and capital expenditure relative to revenue.
- Compared with the immediately preceding quarter, free cash flow was higher, driven by a combination of higher operating cash flow and lower capital expenditure. Compared with the same quarter one year earlier, free cash flow was lower, as operating cash flow declined and capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$438.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$257.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$611.2M
Cash generated by operations before capital spending.
CapEx
$354.0M
Capital spending and related asset purchases.
FCF margin
12.7%
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 | $2.0B | $408.9M | $321.5M | $87.4M | 4.5% |
| 2023-06-30 | $2.1B | $390.8M | $430.6M | -$39.8M | -1.9% |
| 2023-09-29 | $2.2B | $566.6M | $433.0M | $133.6M | 6.1% |
| 2023-12-31 | $2.0B | $611.2M | $354.0M | $257.2M | 12.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 45.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$896.9M | 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 increased from the prior quarter, while capital expenditure decreased, leading to a higher free cash flow and free cash flow margin. The sequential improvement in cash generation was the strongest observable driver.
The sequential rise in free cash flow margin reflected this operational cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow was higher than the prior quarter but lower than the year-ago quarter. Free cash flow margin improved sequentially but declined year over year, reflecting the combined effect of changes in operating cash flow and capital expenditure relative to revenue.
Compared with the immediately preceding quarter, free cash flow was higher, driven by a combination of higher operating cash flow and lower capital expenditure. Compared with the same quarter one year earlier, free cash flow was lower, as operating cash flow declined and capital expenditure was slightly lower.
Monitor whether capital expenditure continues to trend lower or returns to a level closer to the prior year quarter.