Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially but grew compared to the same quarter a year earlier. Operating cash flow rose, yet increased capital expenditure caused free cash flow to be lower than both prior and year-ago quarters.
- The company converted a larger share of revenue into operating cash flow compared to the previous quarter, but the free cash flow margin weakened due to higher capital expenditure.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was lower. Versus the year-ago quarter, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$414.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$239.1M
Cash generated by operations before capital spending.
CapEx
$108.7M
Capital spending and related asset purchases.
FCF margin
17.8%
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 | $716.6M | $138.1M | $82.1M | $56.0M | 7.8% |
| 2023-06-30 | $753.8M | $169.2M | $75.4M | $93.8M | 12.4% |
| 2023-09-30 | $747.4M | $230.1M | $95.8M | $134.3M | 18.0% |
| 2023-12-31 | $732.0M | $239.1M | $108.7M | $130.4M | 17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $647.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Operating cash flow improved despite lower revenue, indicating stronger cash conversion from sales. However, a higher capital expenditure largely offset that gain, leading to slightly lower free cash flow and margin.
The higher capital investment reduced current free cash flow, though it may support future capacity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow compared to the previous quarter, but the free cash flow margin weakened due to higher capital expenditure.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was lower. Versus the year-ago quarter, revenue was higher, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was lower.
Monitor the level of capital expenditure, which increased this quarter and reduced free cash flow.