Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus both the prior quarter and the year-ago quarter, driving higher free cash flow and a stronger free cash flow margin. The sequential and year-over-year gains in cash conversion were supported by revenue growth alongside a stable capital expenditure rate.
- With revenue rising compared to both the preceding quarter and the same quarter last year, operating cash flow grew at a faster pace, resulting in an improved free cash flow margin and higher free cash flow despite a moderate increase in capital expenditure.
- Relative to the immediately preceding quarter, free cash flow margin strengthened from a lower level. Compared to the same quarter one year earlier, free cash flow and its margin were both higher, reflecting improved cash generation from operations.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$536.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$688.0M
Cash generated by operations before capital spending.
CapEx
$152.0M
Capital spending and related asset purchases.
FCF margin
10.7%
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 | $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% |
| 2023-06-30 | $5.0B | $688.0M | $152.0M | $536.0M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.5B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, with the growth rate exceeding that of revenue. This was the strongest observable driver of the improvement in free cash flow and free cash flow margin.
Higher operating cash flow directly elevated free cash flow and widened the free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue rising compared to both the preceding quarter and the same quarter last year, operating cash flow grew at a faster pace, resulting in an improved free cash flow margin and higher free cash flow despite a moderate increase in capital expenditure.
Relative to the immediately preceding quarter, free cash flow margin strengthened from a lower level. Compared to the same quarter one year earlier, free cash flow and its margin were both higher, reflecting improved cash generation from operations.
Monitor the trajectory of operating cash flow relative to revenue to see if the current conversion rate can be sustained or further strengthened.