Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved compared to both the prior quarter and the same quarter last year. Revenue was stable relative to the prior quarter but lower than the year-ago period.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in improved free cash flow and margin.
- Compared to the prior quarter, free cash flow increased and its margin strengthened. Versus the same quarter a year earlier, free cash flow also increased, and the margin improved despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$825.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$233.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$359.9M
Cash generated by operations before capital spending.
CapEx
$126.4M
Capital spending and related asset purchases.
FCF margin
12.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $2.0B | $359.9M | $126.4M | $233.5M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | 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.
Stronger Operating Cash Flow
Operating cash flow was higher than both the preceding quarter and the year-ago quarter, providing the primary lift to free cash flow.
The higher operating cash flow directly supported an improved 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 was higher than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in improved free cash flow and margin.
Compared to the prior quarter, free cash flow increased and its margin strengthened. Versus the same quarter a year earlier, free cash flow also increased, and the margin improved despite lower revenue.
Monitor the trend of capital expenditure relative to operating cash flow, as it influences free cash flow generation.