Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and higher year over year. Operating cash flow, free cash flow, and free cash flow margin all improved versus both the prior quarter and the same quarter last year.
- Operating cash flow increased relative to revenue, driving free cash flow higher. Capital expenditure rose slightly, but the improvement in operating cash flow more than offset the increase, resulting in a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$595.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$702.0M
Cash generated by operations before capital spending.
CapEx
$106.4M
Capital spending and related asset purchases.
FCF margin
12.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.1B | $718.8M | $86.9M | $631.9M | 12.5% |
| 2023-06-30 | $5.1B | $1.2B | $108.4M | $1.1B | 21.1% |
| 2023-09-30 | $4.8B | $650.0M | $97.7M | $552.2M | 11.4% |
| 2023-12-31 | $4.8B | $702.0M | $106.4M | $595.7M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.3% | 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.
Operating Cash Flow Improvement
Operating cash flow was higher sequentially and year over year, outpacing the change in revenue. This was the strongest observable driver of the increase in free cash flow.
The improvement in operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, driving free cash flow higher. Capital expenditure rose slightly, but the improvement in operating cash flow more than offset the increase, resulting in a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics were higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase could pressure free cash flow conversion.