Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the same quarter last year. Free cash flow and its margin improved relative to the year-ago period, though they weakened from the prior quarter.
- Operating cash flow, after deducting capital expenditure, yielded free cash flow. The free cash flow margin was higher than the year-ago level but lower than the preceding quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, leading to decreased free cash flow and margin. Relative to the same quarter one year earlier, all metrics were higher, with free cash flow margin showing improvement.
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
$315.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$445.0M
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
6.6%
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 | $4.5B | $529.0M | $143.0M | $386.0M | 8.6% |
| 2022-09-30 | $4.5B | $889.0M | $138.0M | $751.0M | 16.8% |
| 2022-12-31 | $5.2B | $1.0B | $188.0M | $815.0M | 15.7% |
| 2023-03-31 | $4.8B | $445.0M | $130.0M | $315.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.4B | 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 conversion improvement
Compared to the same quarter last year, operating cash flow and free cash flow increased, driving a higher free cash flow margin. This improvement reflects stronger cash generation from operations.
The higher free cash flow relative to the prior year provides a stronger foundation 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, after deducting capital expenditure, yielded free cash flow. The free cash flow margin was higher than the year-ago level but lower than the preceding quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, leading to decreased free cash flow and margin. Relative to the same quarter one year earlier, all metrics were higher, with free cash flow margin showing improvement.
Monitor exchange rate risk as disclosed in the filing, which notes no material changes from the prior annual report.