Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both increased compared with the prior quarter and the same quarter one year earlier, resulting in a higher free cash flow margin. Revenue also grew over both comparison periods.
- Free cash flow was higher than the prior quarter and the same quarter one year ago, supported by a larger operating cash flow that more than offset capital expenditure. The free cash flow margin improved compared with both prior periods.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $8.3B | $432.0M | $74.0M | $358.0M | 4.3% |
| 2022-12-31 | $8.6B | -$244.0M | $59.0M | -$303.0M | -3.5% |
| 2023-03-31 | $8.8B | $606.0M | $57.0M | $549.0M | 6.2% |
| 2023-06-30 | $9.2B | $1.2B | $50.0M | $1.1B | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 289.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.3B | 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 strength
Revenue was higher compared with both the prior quarter and the same quarter one year earlier, and operating cash flow also rose. The filing context indicates that net cash provided by operating activities for the six-month period benefited from net income adjusted for non-cash items and a decrease in cash consumed by working capital.
Higher operating cash flow drove the increase in free cash flow and the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was higher than the prior quarter and the same quarter one year ago, supported by a larger operating cash flow that more than offset capital expenditure. The free cash flow margin improved compared with both prior periods.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher and the margin strengthened.
Monitor whether the growth in operating cash flow can be sustained, as it was the primary contributor to the free cash flow increase.