Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved versus both periods, supported by higher operating cash flow and a lower capital expenditure relative to the year-ago quarter.
- Operating cash flow as a share of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin rose sequentially and year over year, indicating a stronger conversion of revenue into free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure also increased. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved.
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
$590.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$673.0M
Capital spending and related asset purchases.
FCF margin
11.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $5.2B | $1.3B | $673.0M | $590.0M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, providing the primary support for the increase in free cash flow.
Higher operating cash flow drove the improvement in 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 as a share of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin rose sequentially and year over year, indicating a stronger conversion of revenue into free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure also increased. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while free cash flow still improved.