Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the preceding quarter and the same quarter one year earlier. Free cash flow margin weakened versus the prior quarter but improved from the year-ago period.
- Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter. Capital expenditure was lower sequentially and higher year over year, resulting in free cash flow that was higher year over year but lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue increased while free cash flow and the free cash flow margin decreased. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and the free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$23.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.7B
Cash generated by operations before capital spending.
CapEx
$3.7B
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $52.9B | $8.5B | $3.7B | $4.8B | 9.0% |
| 2022-09-30 | $53.3B | $11.7B | $4.1B | $7.6B | 14.3% |
| 2022-12-31 | $52.1B | $10.3B | $4.6B | $5.8B | 11.0% |
| 2023-03-31 | $59.7B | $8.7B | $3.7B | $5.0B | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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.
Revenue Growth
Revenue increased compared to both the prior quarter and the year-ago quarter. This growth was the strongest observable driver, as it occurred alongside an improvement in the year-over-year free cash flow margin.
Higher revenue supported a larger absolute free cash flow compared to the prior year, even though the margin relative to revenue was slightly lower than in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the preceding quarter. Capital expenditure was lower sequentially and higher year over year, resulting in free cash flow that was higher year over year but lower than the prior quarter.
Compared to the immediately preceding quarter, revenue increased while free cash flow and the free cash flow margin decreased. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and the free cash flow margin were all higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow did not increase proportionally with the sequential revenue growth.