Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved significantly, reflecting stronger cash conversion.
- Operating cash flow grew faster than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter, further supporting free cash flow.
- Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure was lower, resulting in a much higher free cash flow. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
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
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$261.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $15.0B | $2.5B | $282.0M | $2.2B | 14.7% |
| 2022-12-31 | $16.6B | $2.7B | $428.0M | $2.3B | 13.9% |
| 2023-03-31 | $15.9B | $1.6B | $422.0M | $1.2B | 7.3% |
| 2023-06-30 | $17.3B | $3.2B | $261.0M | $3.0B | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Growth
Operating cash flow improved markedly from both the prior quarter and the same quarter last year, driving the increase in free cash flow.
This was the primary factor behind the higher free cash flow and margin improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter, further supporting free cash flow.
Compared to the prior quarter, revenue and operating cash flow were higher, while capital expenditure was lower, resulting in a much higher free cash flow. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
Based on the filing context, the company reported positive operating cash flow and an increase in cash from year-end, and it intends to maintain a strong liquidity position; monitor future cash flow generation.