Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as free cash flow and margin rose compared to both the prior quarter and the same quarter last year. Revenue was higher, and operating cash flow increased more than capital expenditure, supporting the free cash flow expansion.
- Revenue was higher, and operating cash flow increased at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow and margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$772.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$308.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$356.2M
Cash generated by operations before capital spending.
CapEx
$47.8M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $1.5B | $42.0M | $27.8M | $14.2M | 0.9% |
| 2023-06-30 | $1.7B | $253.6M | $25.8M | $227.8M | 13.1% |
| 2023-09-30 | $1.7B | $248.7M | $26.5M | $222.2M | 12.8% |
| 2023-12-31 | $1.9B | $356.2M | $47.8M | $308.4M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and its increase outpaced the rise in capital expenditure, driving free cash flow higher.
The stronger operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow increased at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow and margin showing notable improvement.
Monitor whether capital expenditure continues to rise relative to operating cash flow, as it could affect future free cash flow conversion.