Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while operating cash flow improved sequentially but fell year over year. Free cash flow margin strengthened versus the prior quarter but weakened compared to the same quarter one year earlier.
- Operating cash flow as a share of revenue increased from the prior quarter, supporting a higher free cash flow margin despite a rise in capital expenditure. Compared to the same quarter last year, operating cash flow conversion weakened, and capital expenditure was higher, resulting in a lower free cash flow margin.
- Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved from the prior quarter but was lower than the year-ago period, while free cash flow was higher sequentially but lower year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$555.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$558.4M
Capital spending and related asset purchases.
FCF margin
12.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.8B | $1.1B | $344.2M | $799.2M | 16.6% |
| 2023-03-31 | $4.9B | $733.8M | $226.3M | $507.5M | 10.4% |
| 2023-06-30 | $5.1B | $807.8M | $358.3M | $449.5M | 8.8% |
| 2023-09-30 | $4.6B | $1.1B | $558.4M | $555.3M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 increased from the prior quarter, contributing to a higher free cash flow despite a larger capital expenditure. This sequential improvement in cash generation was the strongest observable driver of the quarter's free cash flow performance.
The higher operating cash flow relative to the prior quarter supported a sequential increase in free cash flow and 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 increased from the prior quarter, supporting a higher free cash flow margin despite a rise in capital expenditure. Compared to the same quarter last year, operating cash flow conversion weakened, and capital expenditure was higher, resulting in a lower free cash flow margin.
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved from the prior quarter but was lower than the year-ago period, while free cash flow was higher sequentially but lower year over year.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the same quarter last year, as it directly affects free cash flow generation.