Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared to both the prior quarter and the same quarter last year, driven by a substantial rise in operating cash flow. The free cash flow margin improved significantly, reaching a higher level than in either comparison period.
- Revenue was lower than in the prior quarter and the year-ago quarter, yet operating cash flow rose sharply, resulting in a higher cash conversion rate. Capital expenditure increased from the prior quarter but was slightly below the year-ago level.
- Compared to the immediately preceding quarter, free cash flow and margin both improved, while revenue declined. Versus the same quarter one year earlier, free cash flow and margin also improved, with revenue lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$852.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$647.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$769.3M
Cash generated by operations before capital spending.
CapEx
$122.3M
Capital spending and related asset purchases.
FCF margin
17.3%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $3.9B | -$286.3M | $68.2M | -$354.5M | -9.0% |
| 2023-07-01 | $4.2B | $264.4M | $68.3M | $196.1M | 4.7% |
| 2023-09-30 | $4.0B | $443.9M | $79.9M | $364.0M | 9.2% |
| 2023-12-30 | $3.7B | $769.3M | $122.3M | $647.0M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -212.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, more than offsetting the decline in revenue and the increase in capital expenditure from the prior quarter.
This drove free cash flow to a higher level and significantly improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than in the prior quarter and the year-ago quarter, yet operating cash flow rose sharply, resulting in a higher cash conversion rate. Capital expenditure increased from the prior quarter but was slightly below the year-ago level.
Compared to the immediately preceding quarter, free cash flow and margin both improved, while revenue declined. Versus the same quarter one year earlier, free cash flow and margin also improved, with revenue lower.
Monitor the trend in operating cash flow relative to revenue, as the current quarter showed a decoupling with higher cash generation despite lower sales.