Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved sharply from the year-ago period but weakened sequentially.
- Operating cash flow increased from the year-ago quarter while capital expenditure declined, resulting in higher free cash flow and a stronger margin. Sequentially, operating cash flow decreased and capital expenditure increased, leading to lower free cash flow and a weaker margin.
- Compared to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Against the same quarter a year ago, all metrics improved: 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
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$526.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$629.5M
Cash generated by operations before capital spending.
CapEx
$102.9M
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $60.1B | $408.6M | $113.4M | $295.2M | 0.5% |
| 2022-09-30 | $61.2B | $1.2B | $173.6M | $990.9M | 1.6% |
| 2022-12-31 | $62.8B | $710.1M | $75.7M | $634.4M | 1.0% |
| 2023-03-31 | $63.5B | $629.5M | $102.9M | $526.7M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow improvement
Operating cash flow was substantially higher than in the same quarter one year earlier, while capital expenditure was lower, driving a much larger free cash flow and a significantly improved free cash flow margin.
This driver contributed to a stronger overall cash generation compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the year-ago quarter while capital expenditure declined, resulting in higher free cash flow and a stronger margin. Sequentially, operating cash flow decreased and capital expenditure increased, leading to lower free cash flow and a weaker margin.
Compared to the prior quarter, revenue was slightly higher but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Against the same quarter a year ago, all metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
The sequential decline in free cash flow margin, despite higher revenue, is a concrete item to monitor.