Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow and operating cash flow were lower than both the prior quarter and the same quarter last year, while revenue was higher than the prior quarter but lower than the year-ago period. The free cash flow margin weakened compared to both periods.
- Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter.
- Compared to the previous quarter, operating cash flow and free cash flow declined substantially, while capital expenditure was higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$457.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$525.1M
Cash generated by operations before capital spending.
CapEx
$67.8M
Capital spending and related asset purchases.
FCF margin
11.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $4.1B | $869.0M | $103.9M | $765.1M | 18.8% |
| 2022-12-31 | $3.9B | $189.0M | $153.7M | $35.3M | 0.9% |
| 2023-03-31 | $3.7B | $971.2M | $47.8M | $923.4M | 24.8% |
| 2023-06-30 | $3.9B | $525.1M | $67.8M | $457.3M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, significantly reducing free cash flow. This decline was the strongest observable driver of the quarter's results.
The decline in operating cash flow weakened free cash flow and the 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 converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter.
Compared to the previous quarter, operating cash flow and free cash flow declined substantially, while capital expenditure was higher. Compared to the same quarter last year, operating cash flow and free cash flow were lower, and capital expenditure was also lower.
Monitor operating cash flow, as its decline was the primary factor behind the lower free cash flow.