Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's cash conversion improved markedly as operating cash flow rose relative to stable revenue, driving a strong free cash flow margin. Both sequential and year-over-year comparisons show higher free cash flow and margin.
- Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased significantly, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow and margin improved relative to both periods.
- Compared to the prior quarter, free cash flow and margin were higher, supported by higher operating cash flow and lower capital spending. Versus the year-ago quarter, free cash flow and margin were also higher, despite slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$206.0M
Capital spending and related asset purchases.
FCF margin
222.3%
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 | $1.4B | $2.8B | $221.0M | $2.6B | 180.6% |
| 2022-12-31 | $1.4B | $8.2B | $290.0M | $7.9B | 577.6% |
| 2023-03-31 | $1.3B | $3.0B | $235.0M | $2.8B | 215.7% |
| 2023-06-30 | $1.4B | $3.4B | $206.0M | $3.1B | 222.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 220.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.5% | 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
The increase in operating cash flow, even as revenue remained broadly stable, was the primary factor behind the higher free cash flow and margin. This improvement occurred despite a modest rise in capital expenditure compared to the year-ago period.
Sustained operating cash flow generation supports the company's ability to invest and manage capital.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter and slightly higher than the prior quarter. Operating cash flow increased significantly, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The resulting free cash flow and margin improved relative to both periods.
Compared to the prior quarter, free cash flow and margin were higher, supported by higher operating cash flow and lower capital spending. Versus the year-ago quarter, free cash flow and margin were also higher, despite slightly higher capital expenditure.
Monitor the company's regulatory capital ratios, as discussed in the filing, for any changes that could affect future operations.