Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow and a stable capital expenditure level. The free cash flow margin also strengthened.
- Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow. Capital expenditure remained relatively steady, allowing the improvement in operating cash flow to flow through to free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the margin improved. Versus the same quarter one year earlier, the same metrics were higher, with a more pronounced improvement in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$640.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$744.9M
Cash generated by operations before capital spending.
CapEx
$104.3M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $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% |
| 2023-06-30 | $66.9B | $744.9M | $104.3M | $640.7M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.6B | 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 strength
Operating cash flow increased significantly from both the prior quarter and the year-ago period, supporting a higher free cash flow despite steady capital expenditure.
This allowed the company to generate more free cash flow relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow. Capital expenditure remained relatively steady, allowing the improvement in operating cash flow to flow through to free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the margin improved. Versus the same quarter one year earlier, the same metrics were higher, with a more pronounced improvement in free cash flow.
Monitor the trend in operating cash flow, as it was the primary driver of free cash flow this quarter.