Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved in the current quarter driven by higher operating cash flow and lower capital expenditure compared to both the prior quarter and the same quarter one year ago. The free cash flow margin strengthened as a result.
- Revenue was lower than both the preceding quarter and the year-ago quarter, yet operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. This indicates a stronger cash conversion efficiency from revenue to free cash flow.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and reduced capital expenditure. Versus the same quarter last year, all cash flow metrics improved while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$613.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$779.0M
Cash generated by operations before capital spending.
CapEx
$166.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-06-30 | $4.0B | $779.0M | $166.0M | $613.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | 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 Strength
Operating cash flow rose compared to the prior quarter and the year-ago quarter, even as revenue declined. This improvement was the primary factor behind the higher free cash flow and margin.
Stronger operating cash flow directly elevated free cash flow and margin without relying on higher revenue or lower capital expenditure alone.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the preceding quarter and the year-ago quarter, yet operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. This indicates a stronger cash conversion efficiency from revenue to free cash flow.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and reduced capital expenditure. Versus the same quarter last year, all cash flow metrics improved while revenue was slightly lower.
Monitor whether the higher operating cash flow level can persist if revenue remains lower than prior periods.