Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were lower sequentially but essentially stable versus the same quarter a year ago. The free cash flow margin improved sequentially despite the revenue decline, reflecting a higher cash conversion rate.
- Operating cash flow as a proportion of revenue increased relative to the prior quarter, lifting the free cash flow margin. Capital expenditure was lower than both comparison periods, which supported free cash flow generation.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all broadly stable, with only minor differences.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$97.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$25.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.6B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
27.0%
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 |
|---|---|---|---|---|---|
| 2022-06-25 | $83.0B | $22.9B | $2.1B | $20.8B | 25.1% |
| 2022-09-24 | $90.1B | $24.1B | $3.3B | $20.8B | 23.1% |
| 2022-12-31 | $117.2B | $34.0B | $3.8B | $30.2B | 25.8% |
| 2023-04-01 | $94.8B | $28.6B | $2.9B | $25.6B | 27.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$82.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash conversion efficiency
The free cash flow margin strengthened sequentially even as revenue declined, driven by a higher operating cash flow conversion rate and a reduced capital expenditure outlay.
This efficiency allowed free cash flow to remain nearly unchanged from a year ago despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased relative to the prior quarter, lifting the free cash flow margin. Capital expenditure was lower than both comparison periods, which supported free cash flow generation.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, but the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all broadly stable, with only minor differences.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it was notably lower this quarter.