Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sequentially while capital expenditure declined, and the free cash flow margin improved. Compared to the same quarter last year, free cash flow and margin both rose modestly.
- Revenue generated operating cash flow that exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin reflects the portion of revenue converted into free cash flow after capital spending.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow remained consistent across all periods. Capital expenditure decreased from the prior quarter and also from the same quarter last year. Free cash flow and free cash flow margin improved sequentially and were slightly higher than the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$510.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$520.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $5.1B | $1.2B | $757.0M | $425.0M | 8.4% |
| 2022-12-31 | $4.9B | $1.0B | $862.0M | $187.0M | 3.8% |
| 2023-03-31 | $4.9B | $1.0B | $660.0M | $384.0M | 7.8% |
| 2023-06-30 | $5.1B | $1.0B | $520.0M | $510.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.2% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, while free cash flow margin improved. This occurred alongside stable operating cash flow.
The sequential improvement in free cash flow was accompanied by a reduction in capital expenditure, with operating cash flow unchanged.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow that exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin reflects the portion of revenue converted into free cash flow after capital spending.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow remained consistent across all periods. Capital expenditure decreased from the prior quarter and also from the same quarter last year. Free cash flow and free cash flow margin improved sequentially and were slightly higher than the year-ago period.
The company’s ability to adjust capital expenditure and share repurchase plans as a liquidity management tool, as noted in the filing.