Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter, while free cash flow margin improved relative to both the immediately preceding quarter and the same quarter a year earlier. Operating cash flow remained robust and capital expenditure was stable compared to the year-ago period.
- Cash conversion was healthy, with a large portion of revenue converted into operating cash flow and free cash flow. The free cash flow margin was higher sequentially and year-over-year, reflecting efficient cash generation even as revenue declined.
- Revenue was lower than the prior quarter but slightly higher than the same quarter last year. Free cash flow was lower than the prior quarter but higher year-over-year, while free cash flow margin improved on both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$101.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$26.4B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
29.7%
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 |
|---|---|---|---|---|---|
| 2022-09-24 | $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% |
| 2023-07-01 | $81.8B | $26.4B | $2.1B | $24.3B | 29.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$76.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Free Cash Flow Margin
Free cash flow margin rose compared to both the prior quarter and the same quarter last year, driven by operating cash flow that remained solid despite lower revenue.
A higher free cash flow margin indicates enhanced cash generation efficiency per dollar of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was healthy, with a large portion of revenue converted into operating cash flow and free cash flow. The free cash flow margin was higher sequentially and year-over-year, reflecting efficient cash generation even as revenue declined.
Revenue was lower than the prior quarter but slightly higher than the same quarter last year. Free cash flow was lower than the prior quarter but higher year-over-year, while free cash flow margin improved on both comparisons.
Monitor capital expenditure trends relative to operating cash flow, as capital expenditure was lower sequentially but stable year-over-year.