Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant increase in operating cash flow. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow improved markedly from the prior quarter, while capital expenditure remained relatively stable. This resulted in a positive free cash flow and a higher free cash flow margin compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher.
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
$593.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$769.0M
Cash generated by operations before capital spending.
CapEx
$176.0M
Capital spending and related asset purchases.
FCF margin
3.1%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $18.9B | $922.3M | $164.8M | $757.5M | 4.0% |
| 2023-07-01 | $19.7B | $1.4B | $318.5M | $1.1B | 5.7% |
| 2023-09-30 | $19.6B | $87.0M | $171.0M | -$84.0M | -0.4% |
| 2023-12-30 | $19.3B | $769.0M | $176.0M | $593.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow increased substantially from the prior quarter, turning free cash flow positive. This was the strongest observable driver of the quarter's performance.
The improvement in operating cash flow was the primary factor behind the positive free cash flow and higher 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 improved markedly from the prior quarter, while capital expenditure remained relatively stable. This resulted in a positive free cash flow and a higher free cash flow margin compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the same quarter last year.