Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared with both the prior quarter and the same quarter one year earlier. The free cash flow margin improved substantially versus both periods.
- Operating cash flow exceeded capital expenditure by a wide margin, producing a high free cash flow and a strong free cash flow margin relative to revenue. The conversion from revenue to free cash flow was robust.
- Compared with the immediately preceding quarter, operating cash flow was higher, capital expenditure was similar, and free cash flow and the free cash flow margin improved significantly. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin also showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$749.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$386.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$425.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
15.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.3B | $410.0M | $67.0M | $343.0M | 14.9% |
| 2023-03-31 | $2.2B | -$25.0M | $32.0M | -$57.0M | -2.6% |
| 2023-06-30 | $2.4B | $115.0M | $38.0M | $77.0M | 3.2% |
| 2023-09-30 | $2.5B | $425.0M | $39.0M | $386.0M | 15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Operating Cash Flow Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the increase in free cash flow and the improved margin.
This quarter's free cash flow was supported by the highest operating cash flow among the periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, producing a high free cash flow and a strong free cash flow margin relative to revenue. The conversion from revenue to free cash flow was robust.
Compared with the immediately preceding quarter, operating cash flow was higher, capital expenditure was similar, and free cash flow and the free cash flow margin improved significantly. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin also showing improvement.
Monitor the trend in working capital changes, as the filing indicated that favorable working capital items were a key factor in operating cash flow.