Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow turned negative as capital expenditure exceeded operating cash flow, while revenue rose compared to the previous quarter. The free cash flow margin weakened against both the prior quarter and the same quarter one year earlier.
- Operating cash flow was higher than the year-ago quarter but lower than the previous quarter. Capital expenditure remained stable versus the prior quarter but increased compared to the year-ago period, resulting in free cash flow that turned negative.
- Compared to the preceding quarter, revenue improved while operating cash flow and free cash flow declined; free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and capital expenditure was higher, with free cash flow and its margin turning negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$607.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$184.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$407.3M
Cash generated by operations before capital spending.
CapEx
$591.7M
Capital spending and related asset purchases.
FCF margin
-4.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.1B | $537.5M | $518.9M | $18.6M | 0.5% |
| 2023-03-31 | $3.8B | $1.2B | $475.7M | $694.1M | 18.3% |
| 2023-06-30 | $2.7B | $676.8M | $598.0M | $78.8M | 2.9% |
| 2023-09-30 | $3.9B | $407.3M | $591.7M | -$184.4M | -4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -83.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure relative to operating cash flow
Capital expenditure exceeded operating cash flow by a significant margin, leading to negative free cash flow. The level of capital expenditure was similar to the prior quarter but notably higher than the year-ago period.
The elevated capital expenditure relative to operating cash flow is the primary factor behind the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the previous quarter. Capital expenditure remained stable versus the prior quarter but increased compared to the year-ago period, resulting in free cash flow that turned negative.
Compared to the preceding quarter, revenue improved while operating cash flow and free cash flow declined; free cash flow margin weakened. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and capital expenditure was higher, with free cash flow and its margin turning negative.
Monitor whether operating cash flow can cover capital expenditure in future periods, given the negative free cash flow this quarter.