Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from the same quarter a year earlier. Operating cash flow, free cash flow, and free cash flow margin all improved compared to both prior periods.
- Free cash flow resulted from operating cash flow after capital expenditure. The free cash flow margin improved relative to both the prior quarter and the year-ago quarter, indicating stronger cash conversion per dollar of revenue.
- Revenue was lower than the prior quarter but higher than the same quarter a year earlier. Operating cash flow, free cash flow, and free cash flow margin were all higher than the prior quarter and significantly improved from the year-ago period when operating cash flow was negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$109.0M
Capital spending and related asset purchases.
FCF margin
2.5%
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 | $47.1B | $3.0B | $164.0M | $2.9B | 6.1% |
| 2022-09-30 | $49.6B | $23.0M | $70.0M | -$47.0M | -0.1% |
| 2022-12-31 | $51.5B | $597.0M | $85.0M | $512.0M | 1.0% |
| 2023-03-31 | $50.5B | $1.4B | $109.0M | $1.3B | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 362.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Operating Cash Flow Improvement
Operating cash flow turned positive and increased substantially from the prior quarter and the year-ago quarter, providing the primary boost to free cash flow.
This improvement directly lifted the free cash flow margin to a higher level than both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow resulted from operating cash flow after capital expenditure. The free cash flow margin improved relative to both the prior quarter and the year-ago quarter, indicating stronger cash conversion per dollar of revenue.
Revenue was lower than the prior quarter but higher than the same quarter a year earlier. Operating cash flow, free cash flow, and free cash flow margin were all higher than the prior quarter and significantly improved from the year-ago period when operating cash flow was negative.
Monitor revenue as it decreased slightly from the prior quarter while operating cash flow and free cash flow increased.