Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher revenue and operating cash flow. However, free cash flow weakened from the immediately preceding quarter as operating cash flow declined.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure decreased compared to the year-ago quarter but increased from the prior quarter. Free cash flow margin improved versus the year-ago quarter but weakened from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow was lower due to a decline in operating cash flow, despite a slight increase in revenue. Compared to the same quarter one year earlier, free cash flow was higher, supported by stronger revenue and operating cash flow, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$522.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$601.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
3.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $12.2B | $1.7B | $98.0M | $1.6B | 12.9% |
| 2022-09-30 | $13.2B | $2.0B | $124.0M | $1.9B | 14.6% |
| 2022-12-31 | $13.6B | $970.0M | $68.0M | $902.0M | 6.6% |
| 2023-03-31 | $13.8B | $601.0M | $79.0M | $522.0M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -163.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher compared to both the prior quarter and the year-ago quarter, providing a stronger base for cash generation.
Higher revenue supported the improvement in free cash flow relative to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure decreased compared to the year-ago quarter but increased from the prior quarter. Free cash flow margin improved versus the year-ago quarter but weakened from the prior quarter.
Compared to the immediately preceding quarter, free cash flow was lower due to a decline in operating cash flow, despite a slight increase in revenue. Compared to the same quarter one year earlier, free cash flow was higher, supported by stronger revenue and operating cash flow, while capital expenditure was lower.
Monitor the trend in operating cash flow, which declined from the prior quarter despite higher revenue.