Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the year-ago quarter. Free cash flow turned significantly positive, with a substantial improvement in margin.
- With revenue unchanged, a materially higher operating cash flow and a lower capital expenditure led to a much larger free cash flow and a positive free cash flow margin.
- Compared to the prior quarter, free cash flow improved from a negative to a positive figure, and the margin rose correspondingly. Versus the same quarter one year earlier, free cash flow was higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$586.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$946.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$354.0M
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $13.1B | $7.0M | $508.0M | -$501.0M | -3.8% |
| 2023-07-01 | $13.1B | $660.0M | $467.0M | $193.0M | 1.5% |
| 2023-09-30 | $13.3B | $323.0M | $375.0M | -$52.0M | -0.4% |
| 2023-12-30 | $13.3B | $1.3B | $354.0M | $946.0M | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 884.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Strong operating cash flow
Operating cash flow increased substantially from the prior quarter and also from the year-ago period, while capital expenditure declined. This combination drove the improvement in free cash flow.
The improvement in operating cash flow was the primary factor behind the positive free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a materially higher operating cash flow and a lower capital expenditure led to a much larger free cash flow and a positive free cash flow margin.
Compared to the prior quarter, free cash flow improved from a negative to a positive figure, and the margin rose correspondingly. Versus the same quarter one year earlier, free cash flow was higher and the margin improved.
Monitor the trajectory of operating cash flow given the large sequential increase.