Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the previous quarter and higher than the same quarter one year earlier. Operating cash flow and free cash flow improved, resulting in a higher free cash flow margin.
- Cash conversion strengthened as operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, all cash flow metrics improved, with revenue also higher.
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
$579.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$724.0M
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
26.9%
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 | $2.0B | $741.0M | $171.0M | $570.0M | 27.9% |
| 2023-03-31 | $2.0B | $549.0M | $223.0M | $326.0M | 16.3% |
| 2023-06-30 | $2.2B | $183.0M | $166.0M | $17.0M | 0.8% |
| 2023-09-30 | $2.2B | $724.0M | $145.0M | $579.0M | 26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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 increase
Operating cash flow was higher compared to both the prior quarter and the same quarter one year earlier, while capital expenditure was lower, contributing to a significant increase in free cash flow.
This drove a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin relative to revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter one year earlier, all cash flow metrics improved, with revenue also higher.
Monitor inventory levels as the filing notes an increase partly due to product build-up and lower than anticipated sales for certain products.