Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the same quarter last year but lower than the previous quarter. Free cash flow, while still negative, improved from a year ago, but weakened significantly from the prior quarter.
- Cash conversion weakened as operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure increased sequentially, further reducing free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$786.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$318.0M
Cash generated by operations before capital spending.
CapEx
$468.0M
Capital spending and related asset purchases.
FCF margin
-4.4%
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 | $16.7B | $81.0M | $263.0M | -$182.0M | -1.1% |
| 2022-09-30 | $16.0B | $3.2B | $284.0M | $2.9B | 18.2% |
| 2022-12-31 | $20.0B | $3.5B | $326.0M | $3.1B | 15.7% |
| 2023-03-31 | $17.9B | -$318.0M | $468.0M | -$786.0M | -4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 189.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$44.4B | 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 Shift
Operating cash flow went from a large positive in the prior quarter to a negative figure this quarter, driving the free cash flow deterioration. This shift was the strongest observable factor in the quarter's cash conversion.
The negative free cash flow margin reflects the current cash conversion weakness stemming from the operating cash flow reversal.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure increased sequentially, further reducing free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the trajectory of operating cash flow, as it swung sharply from positive to negative.