Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than the year-ago quarter. This combination drove free cash flow higher and expanded the free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$851.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$934.8M
Cash generated by operations before capital spending.
CapEx
$83.5M
Capital spending and related asset purchases.
FCF margin
19.2%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $3.7B | $8.5M | $77.1M | -$68.6M | -1.9% |
| 2023-06-30 | $4.7B | $524.0M | $56.9M | $467.1M | 9.9% |
| 2023-09-30 | $4.9B | $922.3M | $83.2M | $839.1M | 17.2% |
| 2023-12-31 | $4.4B | $934.8M | $83.5M | $851.3M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 increased sequentially and year over year despite a sequential revenue decline, indicating improved cash conversion efficiency.
This was the strongest observable driver of the 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 was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than the year-ago quarter. This combination drove free cash flow higher and expanded the free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable quarter over quarter while revenue declined.