Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased from the prior quarter, while capital expenditure decreased, bringing free cash flow to near zero. Compared to the same quarter last year, operating cash flow was lower and free cash flow turned from positive to slightly negative.
- Operating cash flow as a share of revenue improved from the prior quarter but was lower than a year ago. Capital expenditure declined relative to both periods, and free cash flow margin moved from negative to near zero, though it was slightly below the positive margin of the prior year.
- Free cash flow margin improved significantly from the prior quarter’s negative level but weakened slightly from the positive margin of the same quarter last year. Revenue was higher than both the preceding quarter and the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$701.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$48000
Free cash flow in the selected fiscal quarter.
Operating cash flow
$396.3M
Cash generated by operations before capital spending.
CapEx
$396.3M
Capital spending and related asset purchases.
FCF margin
-0.0%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.0B | $209.5M | $430.6M | -$221.1M | -21.9% |
| 2023-03-31 | $945.0M | $211.6M | $445.2M | -$233.6M | -24.7% |
| 2023-06-30 | $1.1B | $226.0M | $473.0M | -$247.0M | -22.0% |
| 2023-09-30 | $1.6B | $396.3M | $396.3M | -$48000 | -0.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.2% | 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 than the prior quarter, while capital expenditure was lower, resulting in a near-zero free cash flow. This combination drove the substantial narrowing of the free cash flow deficit.
The improvement in operating cash flow relative to capital expenditure was the primary factor behind the free cash flow recovery from a large deficit to near breakeven.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved from the prior quarter but was lower than a year ago. Capital expenditure declined relative to both periods, and free cash flow margin moved from negative to near zero, though it was slightly below the positive margin of the prior year.
Free cash flow margin improved significantly from the prior quarter’s negative level but weakened slightly from the positive margin of the same quarter last year. Revenue was higher than both the preceding quarter and the year-ago period.
Monitor the effect of property tax increases on future operating expenses, as the filing discusses higher property taxes related to plant additions and improvements.