Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from a year ago. Operating cash flow and free cash flow improved compared to both periods, with free cash flow margin strengthening.
- Operating cash flow as a percentage of revenue improved, while capital expenditure was lower, resulting in a higher free cash flow margin.
- Sequentially, revenue was lower but operating cash flow was higher, and capital expenditure was slightly lower, leading to a higher free cash flow. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, and capital expenditure was significantly lower, resulting in a stronger free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$493.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$214.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.1M
Cash generated by operations before capital spending.
CapEx
$66.6M
Capital spending and related asset purchases.
FCF margin
18.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.3B | $103.8M | $82.8M | $21.1M | 1.6% |
| 2022-12-31 | $1.2B | $205.6M | $91.8M | $113.8M | 9.4% |
| 2023-03-31 | $1.3B | $215.8M | $71.4M | $144.3M | 11.3% |
| 2023-06-30 | $1.2B | $281.1M | $66.6M | $214.5M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger cash generation
Operating cash flow increased while capital expenditure declined, boosting free cash flow. The filing notes that the increase in operating cash flow was primarily due to lower compensation-related payments and continued inventory investment to reduce lead times.
The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved, while capital expenditure was lower, resulting in a higher free cash flow margin.
Sequentially, revenue was lower but operating cash flow was higher, and capital expenditure was slightly lower, leading to a higher free cash flow. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, and capital expenditure was significantly lower, resulting in a stronger free cash flow.
Monitor the level of capital expenditure, which was lower in the current quarter, and the continued investment in inventory as noted in the filing.