Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with a slightly improved free cash flow margin.
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
$584.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$953.1M
Cash generated by operations before capital spending.
CapEx
$369.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $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% |
| 2023-09-30 | $3.8B | $953.1M | $369.0M | $584.1M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year. This was the strongest observable factor reducing free cash flow relative to operating cash flow.
Higher capital expenditure absorbed a larger share of operating cash flow, causing free cash flow to decline sequentially despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased relative to both periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with a slightly improved free cash flow margin.
Monitor the trend in capital expenditure, which was higher in both comparisons and directly reduced free cash flow relative to operating cash flow.