Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow turned positive, supported by higher revenue and improved cash conversion. Operating cash flow strengthened while capital expenditure decreased, leading to a positive free cash flow margin.
- Revenue increased relative to the prior quarter and the year-ago quarter. Operating cash flow grew substantially from both comparison periods, while capital expenditure declined, resulting in positive free cash flow and a positive free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure decreased. Versus the same quarter one year earlier, all metrics improved: revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$16.5B
Cash generated by operations before capital spending.
CapEx
$11.5B
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $127.1B | $11.4B | $16.4B | -$5.0B | -3.9% |
| 2022-12-31 | $149.2B | $29.2B | $16.6B | $12.6B | 8.4% |
| 2023-03-31 | $127.4B | $4.8B | $14.2B | -$9.4B | -7.4% |
| 2023-06-30 | $134.4B | $16.5B | $11.5B | $5.0B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 Improvement
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, while revenue also rose. The improvement in operating cash flow was the strongest observable driver of the positive free cash flow.
Higher operating cash flow combined with lower capital expenditure enabled the company to generate positive free cash flow and a positive margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to the prior quarter and the year-ago quarter. Operating cash flow grew substantially from both comparison periods, while capital expenditure declined, resulting in positive free cash flow and a positive free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure decreased. Versus the same quarter one year earlier, all metrics improved: revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned positive from negative.
Monitor whether free cash flow and operating cash flow can sustain their positive levels relative to capital expenditure.