Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year earlier. Operating cash flow improved markedly, leading to a significantly higher free cash flow and an improved free cash flow margin.
- The company converted a stable revenue base into a higher operating cash flow, and with lower capital expenditure, free cash flow improved. The free cash flow margin expanded as a result.
- Sequentially, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Year over year, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved from a low level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$814.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$256.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$286.3M
Cash generated by operations before capital spending.
CapEx
$30.0M
Capital spending and related asset purchases.
FCF margin
23.2%
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 | $128.6M | $27.4M | $101.3M | 9.8% |
| 2023-03-31 | $1.1B | $282.6M | $28.8M | $253.7M | 22.7% |
| 2023-06-30 | $1.1B | $237.4M | $34.4M | $203.0M | 18.1% |
| 2023-09-30 | $1.1B | $286.3M | $30.0M | $256.2M | 23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.1B | 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 increased significantly both sequentially and year over year, driving a substantial rise in free cash flow.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a stable revenue base into a higher operating cash flow, and with lower capital expenditure, free cash flow improved. The free cash flow margin expanded as a result.
Sequentially, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Year over year, operating cash flow and free cash flow were substantially higher, and the free cash flow margin improved from a low level.
Monitor fluctuations in operating cash flow due to working capital requirements and supply chain disruptions, as noted in the filing.