Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated higher free cash flow and improved its free cash flow margin compared to both the prior quarter and the same quarter last year. Revenue was also higher, and operating cash flow grew more than capital expenditure, supporting the cash conversion.
- Revenue was higher sequentially and year over year, while operating cash flow increased at a faster pace, leading to a higher free cash flow and a stronger free cash flow margin. Capital expenditure rose modestly but remained well below operating cash flow, aiding conversion.
- Compared with the prior quarter, free cash flow and free cash flow margin both improved. Year over year, the improvement was more pronounced, with free cash flow and margin significantly higher than the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$445.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$634.0M
Cash generated by operations before capital spending.
CapEx
$189.0M
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 |
|---|---|---|---|---|---|
| 2022-06-24 | $4.1B | $579.0M | $205.0M | $374.0M | 9.1% |
| 2022-09-30 | $4.4B | $944.0M | $212.0M | $732.0M | 16.8% |
| 2022-12-30 | $3.8B | $581.0M | $183.0M | $398.0M | 10.4% |
| 2023-03-31 | $4.2B | $634.0M | $189.0M | $445.0M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 Strengthening
Operating cash flow increased compared with the prior quarter and was substantially higher than the year-ago quarter. This growth outpaced the rise in capital expenditure, resulting in a higher free cash flow and an improved free cash flow margin.
The stronger operating cash flow enhances the company's ability to fund investments and return capital without relying on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher sequentially and year over year, while operating cash flow increased at a faster pace, leading to a higher free cash flow and a stronger free cash flow margin. Capital expenditure rose modestly but remained well below operating cash flow, aiding conversion.
Compared with the prior quarter, free cash flow and free cash flow margin both improved. Year over year, the improvement was more pronounced, with free cash flow and margin significantly higher than the same quarter one year earlier.
Monitor the company's exposure to geopolitical and pandemic-related disruptions as noted in the filing, which may affect future operating cash flow.