Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow turned negative from a positive position in the prior quarter, though it improved compared to the same quarter last year.
- Operating cash flow decreased sharply from the prior quarter, while capital expenditure also declined, resulting in negative free cash flow. The free cash flow margin weakened from the prior quarter but improved relative to the same quarter last year.
- Compared to the prior quarter, revenue was lower and operating cash flow was significantly lower, leading to a weakened free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow was higher, resulting in an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$80.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$330.0M
Cash generated by operations before capital spending.
CapEx
$410.0M
Capital spending and related asset purchases.
FCF margin
-1.0%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $6.8B | $408.0M | $360.0M | $48.0M | 0.7% |
| 2022-09-30 | $7.5B | $1.6B | $382.0M | $1.2B | 15.8% |
| 2022-12-31 | $7.9B | $1.6B | $572.0M | $1.0B | 13.2% |
| 2023-03-31 | $7.7B | $330.0M | $410.0M | -$80.0M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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.
Working Capital Impact
The increase in working capital was the strongest observable driver of the decline in operating cash flow, as it consumed a substantial amount of cash during the quarter.
This working capital build was the primary factor behind the negative free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased sharply from the prior quarter, while capital expenditure also declined, resulting in negative free cash flow. The free cash flow margin weakened from the prior quarter but improved relative to the same quarter last year.
Compared to the prior quarter, revenue was lower and operating cash flow was significantly lower, leading to a weakened free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow was higher, resulting in an improved free cash flow margin.
Monitor the change in working capital, which was a significant use of cash in the current quarter.