Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and the same quarter last year, driving a substantial rise in free cash flow. Free cash flow margin improved significantly, reflecting higher cash generation relative to revenue.
- The company converted a higher portion of revenue into operating cash flow, and capital expenditure decreased from the prior quarter, resulting in a free cash flow margin that was higher than both the preceding quarter and the year-ago period.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue and all cash flow metrics were higher, with capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$271.0M
Capital spending and related asset purchases.
FCF margin
54.9%
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 | $6.7B | $3.0B | $160.0M | $2.8B | 42.4% |
| 2022-12-31 | $6.8B | $2.6B | $340.0M | $2.3B | 33.8% |
| 2023-03-31 | $6.1B | $1.1B | $344.0M | $720.0M | 11.8% |
| 2023-06-30 | $7.0B | $4.1B | $271.0M | $3.8B | 54.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 278.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Cash Generation
Operating cash flow was higher than the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. The increase in cash from operations was the most significant factor in the quarter's cash conversion.
This strengthening in cash generation supports the company's ability to fund capital expenditures and other strategic initiatives.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher portion of revenue into operating cash flow, and capital expenditure decreased from the prior quarter, resulting in a free cash flow margin that was higher than both the preceding quarter and the year-ago period.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue and all cash flow metrics were higher, with capital expenditure slightly higher.
Monitor the company's liquidity and capital resource trends as described in the management discussion and analysis.