Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, as capital expenditure rose more than operating cash flow.
- Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than both comparison periods. The free cash flow margin declined accordingly.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$490.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$713.8M
Cash generated by operations before capital spending.
CapEx
$223.3M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $3.7B | $702.1M | $124.9M | $577.2M | 15.7% |
| 2022-09-30 | $3.8B | $961.0M | $159.9M | $801.1M | 21.1% |
| 2022-12-31 | $3.6B | $795.2M | $174.5M | $620.7M | 17.0% |
| 2023-03-31 | $3.7B | $713.8M | $223.3M | $490.5M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | 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.
Capital Expenditure Growth
Capital expenditure was higher than both the prior quarter and the year-ago quarter, absorbing a larger share of operating cash flow. This was the strongest observable driver of the decline in free cash flow and free cash flow margin.
Higher capital expenditure reduced free cash flow despite higher revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than both comparison periods. The free cash flow margin declined accordingly.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase outpaced cash generation this quarter.