Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher revenue and operating cash flow. Capital expenditure also increased, but the free cash flow margin strengthened compared to the preceding quarter.
- Revenue rose in the current quarter, and operating cash flow increased at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin compared to the preceding quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow margin strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$26.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$12.4B
Cash generated by operations before capital spending.
CapEx
$4.7B
Capital spending and related asset purchases.
FCF margin
11.9%
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 | $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% |
| 2023-06-30 | $65.4B | $12.4B | $4.7B | $7.7B | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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 Driving Cash Flow
Revenue rose compared to both the prior quarter and the year-ago period, and operating cash flow increased by a greater relative amount, supporting higher free cash flow. This was the strongest observable driver of the quarter's performance.
The combination of higher revenue and improved cash conversion lifted free cash flow and margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose in the current quarter, and operating cash flow increased at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin compared to the preceding quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow margin strengthening.
Monitor the trend in capital expenditure relative to operating cash flow, as the current increase partially offset free cash flow generation.