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 the same quarter last year. Free cash flow margin weakened from the prior quarter but improved relative to the year-ago quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased from both the prior quarter and the year-ago quarter, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower, with capital expenditure higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$350.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$898.7M
Cash generated by operations before capital spending.
CapEx
$547.8M
Capital spending and related asset purchases.
FCF margin
9.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $3.8B | $898.7M | $547.8M | $350.9M | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.7B | 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 in the current quarter compared to both the prior quarter and the same quarter one year earlier. This was the strongest observable driver of the decline in free cash flow from the prior quarter.
Higher capital expenditure reduced free cash flow despite stable revenue and higher operating cash flow compared to the year-ago quarter.
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 the year-ago quarter. Capital expenditure increased from both the prior quarter and the year-ago quarter, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower, with capital expenditure higher. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was slightly higher.
Monitor the level of capital expenditure relative to operating cash flow, as it was higher in the current quarter compared to both the prior quarter and the year-ago quarter.