Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter but improved compared with the same quarter one year earlier, driven by higher operating cash flow. Revenue increased, yet capital expenditure remained substantial, keeping free cash flow margin negative.
- Operating cash flow was positive and higher than the prior year's same quarter, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow. Free cash flow margin was negative, reflecting that capital outflows outpaced cash generation from revenue.
- Compared with the immediately preceding quarter, free cash flow turned from positive to negative, and free cash flow margin weakened. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were less negative, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$9.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$14.2B
Capital spending and related asset purchases.
FCF margin
-7.4%
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 | $121.2B | $9.0B | $15.7B | -$6.8B | -5.6% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -296.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure outpacing operating cash flow
Capital expenditure remained high and exceeded operating cash flow, leading to negative free cash flow despite improved operating cash generation relative to the year-ago quarter.
The large capital spend absorbed all operating cash flow and additional resources, resulting in a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and higher than the prior year's same quarter, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow. Free cash flow margin was negative, reflecting that capital outflows outpaced cash generation from revenue.
Compared with the immediately preceding quarter, free cash flow turned from positive to negative, and free cash flow margin weakened. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were less negative, while revenue was higher.
Monitor trends in capital expenditure relative to operating cash flow, as the current quarter's large capital outlays were the primary factor driving negative free cash flow.