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 improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter one year earlier, both operating cash flow and free cash flow were lower, and the margin weakened.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but fell from the year-ago quarter, while capital expenditure decreased relative to both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
- Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow declined despite lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
7.9%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $14.0B | $1.2B | $62.0M | $1.1B | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -81.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating cash flow recovery
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow and margin. This was the strongest observable driver of the quarter's sequential improvement.
The sequential rise in operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but fell from the year-ago quarter, while capital expenditure decreased relative to both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow declined despite lower capital expenditure.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.