Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow margin weakened sequentially but was essentially unchanged from the same quarter last year.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was lower sequentially and higher year over year, resulting in free cash flow that was lower than the prior quarter and higher than the same quarter last year.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$662.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$828.7M
Cash generated by operations before capital spending.
CapEx
$166.1M
Capital spending and related asset purchases.
FCF margin
49.1%
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 | $1.3B | $1.1B | $154.7M | $946.2M | 73.9% |
| 2022-09-30 | $1.3B | $941.7M | $156.0M | $785.6M | 59.7% |
| 2022-12-31 | $1.4B | $932.1M | $184.6M | $747.5M | 53.4% |
| 2023-03-31 | $1.4B | $828.7M | $166.1M | $662.6M | 49.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash generation improvement
Operating cash flow and free cash flow were both higher than the same quarter last year, with free cash flow margin essentially unchanged. This indicates that the company converted revenue into cash at a similar rate year over year while generating more absolute cash.
The year-over-year increase in free cash flow provides a stronger base for capital allocation decisions.
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 was lower sequentially and higher year over year, resulting in free cash flow that was lower than the prior quarter and higher than the same quarter last year.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while free cash flow margin was stable.
Monitor the trend in operating cash flow, which declined from the prior quarter despite stable revenue.