Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow decreased compared with the prior year, while free cash flow margin narrowed. Capital expenditure increased sequentially, contributing to a lower free cash flow than the preceding quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was weaker than both the prior quarter and the same quarter last year. Capital expenditure consumed a larger share of operating cash flow compared with the preceding quarter.
- Compared with the immediately preceding quarter, revenue was higher but free cash flow and free cash flow margin were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$696.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$507.0M
Capital spending and related asset purchases.
FCF margin
7.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $10.4B | $2.8B | $467.0M | $2.3B | 22.2% |
| 2022-12-31 | $10.1B | $2.3B | $610.0M | $1.7B | 17.0% |
| 2023-03-31 | $9.7B | $1.1B | $380.0M | $763.0M | 7.8% |
| 2023-06-30 | $10.0B | $1.2B | $507.0M | $696.0M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and operating cash flow decline
Revenue fell from the year-ago quarter, and operating cash flow dropped more sharply, compressing the free cash flow margin. The sequential comparison shows a modest revenue increase but a decrease in free cash flow due to higher capital expenditure.
The combination of lower operating cash flow and higher capital expenditure weakened free cash flow compared with both the prior quarter and the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was weaker than both the prior quarter and the same quarter last year. Capital expenditure consumed a larger share of operating cash flow compared with the preceding quarter.
Compared with the immediately preceding quarter, revenue was higher but free cash flow and free cash flow margin were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all significantly lower.
The rise in capital expenditure relative to the prior quarter, combined with a year-over-year decline in operating cash flow, warrants monitoring for its effect on future free cash flow generation.