Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened significantly versus both periods.
- Operating cash flow as a share of revenue was higher than both the preceding quarter and the year-ago quarter, supporting a higher free cash flow margin after capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, all metrics were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$594.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$172.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$291.2M
Cash generated by operations before capital spending.
CapEx
$118.9M
Capital spending and related asset purchases.
FCF margin
13.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $1.2B | $146.1M | $83.3M | $62.8M | 5.1% |
| 2023-12-31 | $1.3B | $291.2M | $118.9M | $172.3M | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow improvement
Operating cash flow was higher than the prior quarter and the year-ago quarter, contributing to a stronger free cash flow. The filing notes that the increase in operating cash flow for the nine-month period was driven by higher earnings and lower cash used for tax and compensation payments.
The higher operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than both the preceding quarter and the year-ago quarter, supporting a higher free cash flow margin after capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, all metrics were also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both comparison periods.