Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the prior quarter, while operating cash flow decreased and capital expenditure also fell. Compared to the same quarter last year, free cash flow improved significantly, driven by higher operating cash flow and lower capital spending.
- Revenue was unchanged from the prior quarter, but operating cash flow declined, leading to a slightly lower free cash flow margin. Capital expenditure decreased, partially offsetting the drop in operating cash flow.
- Compared to the prior quarter, free cash flow was slightly lower, with operating cash flow decreasing and capital expenditure also declining. Versus the same quarter last year, free cash flow was higher, as operating cash flow improved and capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$726.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$168.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$280.4M
Cash generated by operations before capital spending.
CapEx
$112.4M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $2.2B | $319.0M | $184.3M | $134.7M | 6.0% |
| 2022-09-30 | $2.1B | $430.6M | $179.6M | $251.0M | 11.8% |
| 2022-12-31 | $2.0B | $420.1M | $247.1M | $173.0M | 8.7% |
| 2023-03-31 | $2.0B | $280.4M | $112.4M | $168.0M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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.
Improved Free Cash Flow Year Over Year
Free cash flow was higher than the same quarter last year, supported by a combination of higher operating cash flow and lower capital expenditure.
This improvement strengthened the company's cash generation relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow declined, leading to a slightly lower free cash flow margin. Capital expenditure decreased, partially offsetting the drop in operating cash flow.
Compared to the prior quarter, free cash flow was slightly lower, with operating cash flow decreasing and capital expenditure also declining. Versus the same quarter last year, free cash flow was higher, as operating cash flow improved and capital expenditure was reduced.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite stable revenue.