Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially and year over year, driven by higher operating cash flow and revenue. The free cash flow margin strengthened, reflecting efficient conversion of revenue into cash.
- Operating cash flow increased relative to the prior quarter and the same quarter a year earlier, leading to a higher free cash flow despite a modest increase in capital expenditure. The free cash flow margin expanded as a result.
- Compared with the immediately preceding quarter, revenue and operating cash flow were higher, and free cash flow rose significantly. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow at higher levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$555.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$597.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $3.3B | $278.0M | $25.0M | $253.0M | 7.6% |
| 2023-06-30 | $3.7B | $446.0M | $37.0M | $409.0M | 11.0% |
| 2023-09-30 | $3.5B | $306.0M | $34.0M | $272.0M | 7.7% |
| 2023-12-31 | $3.6B | $597.0M | $42.0M | $555.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 171.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.6B | 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 Strength
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, contributing the most to the free cash flow improvement. Revenue growth was also supportive but to a lesser extent.
The free cash flow margin reached a higher level compared with both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter and the same quarter a year earlier, leading to a higher free cash flow despite a modest increase in capital expenditure. The free cash flow margin expanded as a result.
Compared with the immediately preceding quarter, revenue and operating cash flow were higher, and free cash flow rose significantly. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow at higher levels.
Monitor the trend of operating cash flow relative to revenue, as it was the primary driver of free cash flow improvement.