Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus the prior quarter and was higher than the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow margin improved sequentially and year-over-year.
- Compared to the prior quarter, revenue was higher, operating cash flow increased substantially, capital expenditure decreased, and free cash flow rose sharply. Versus the same quarter last year, revenue was higher, operating cash flow improved, capital expenditure was higher, and free cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$742.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$335.7M
Capital spending and related asset purchases.
FCF margin
19.9%
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 | $3.6B | $816.8M | $277.5M | $539.3M | 15.0% |
| 2022-12-31 | $3.5B | $810.0M | $529.2M | $280.8M | 8.0% |
| 2023-03-31 | $3.6B | $687.7M | $378.6M | $309.1M | 8.6% |
| 2023-06-30 | $3.7B | $1.1B | $335.7M | $742.8M | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | 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 Growth
Operating cash flow increased substantially from the prior quarter and was higher than the year-ago quarter, driving a significant improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion.
The higher operating cash flow directly supported a stronger 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 as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow margin improved sequentially and year-over-year.
Compared to the prior quarter, revenue was higher, operating cash flow increased substantially, capital expenditure decreased, and free cash flow rose sharply. Versus the same quarter last year, revenue was higher, operating cash flow improved, capital expenditure was higher, and free cash flow increased.
Monitor the trend in capital expenditure, which was lower than the prior quarter but higher than the year-ago quarter.