Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but significantly higher than the same quarter last year. The free cash flow margin weakened sequentially while improving sharply from a year ago.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was stable versus last year but slightly lower than the prior quarter. Capital expenditure decreased markedly from the year-ago level, contributing to the improvement in free cash flow and free cash flow margin compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, and revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$988.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$197.8M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $8.5B | $684.8M | $138.7M | $546.1M | 6.4% |
| 2023-06-30 | $8.9B | $975.5M | $168.4M | $807.1M | 9.1% |
| 2023-09-30 | $8.7B | $1.3B | $190.1M | $1.2B | 13.3% |
| 2023-12-31 | $9.1B | $1.2B | $197.8M | $988.9M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 reduction
Capital expenditure in the current quarter was lower than both the prior quarter and the same quarter last year. The year-over-year decline was substantial and was the strongest observable factor behind the improvement in free cash flow and free cash flow margin.
Lower capital expenditure directly supported higher free cash flow and free cash flow margin compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was stable versus last year but slightly lower than the prior quarter. Capital expenditure decreased markedly from the year-ago level, contributing to the improvement in free cash flow and free cash flow margin compared to the same quarter last year.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, while revenue was higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, and revenue was higher.
Monitor the level of capital expenditure, as it was substantially lower than the year-ago quarter and may vary in future periods.