Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable versus the prior quarter and improved from a year ago. Free cash flow and margin both declined sequentially but remained above the prior-year quarter.
- Operating cash flow drove free cash flow after capital expenditure, producing a free cash flow margin that weakened from the prior quarter but improved from the prior year. The conversion was driven entirely by operating cash flow as capital expenditure decreased both sequentially and year over year.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were all lower, while revenue was slightly lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$215.0M
Capital spending and related asset purchases.
FCF margin
6.7%
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 | $33.7B | $3.3B | $247.0M | $3.1B | 9.1% |
| 2022-12-31 | $33.6B | -$1.6B | $233.0M | -$1.8B | -5.4% |
| 2023-03-31 | $35.0B | $4.3B | $225.0M | $4.0B | 11.6% |
| 2023-06-30 | $34.8B | $2.5B | $215.0M | $2.3B | 6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 220.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$836.0M | 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 variability
Operating cash flow decreased significantly from the prior quarter, falling from a higher level to a lower level, which directly reduced free cash flow. The year-ago comparison showed improvement, but the sequential decline is the strongest observable directional change.
Weaker sequential cash conversion lowered free cash flow margin despite stable revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow drove free cash flow after capital expenditure, producing a free cash flow margin that weakened from the prior quarter but improved from the prior year. The conversion was driven entirely by operating cash flow as capital expenditure decreased both sequentially and year over year.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were all lower, while revenue was slightly lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow recovers toward its prior-quarter level, as it was the primary driver of the sequential free cash flow decline.