Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the same quarter last year but weakened from the preceding quarter. The margin was higher than a year ago but lower than the prior quarter.
- Revenue was lower than the prior quarter, and operating cash flow declined more sharply, leading to a lower free cash flow margin. Capital expenditure decreased slightly, but the reduction in operating cash flow had a larger impact on free cash flow.
- Sequentially, free cash flow and margin decreased from the preceding quarter. Year-over-year, both free cash flow and margin increased compared to the same quarter last year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$721.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$820.0M
Capital spending and related asset purchases.
FCF margin
1.3%
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 |
|---|---|---|---|---|---|
| 2022-05-08 | $52.6B | $1.2B | $854.0M | $373.0M | 0.7% |
| 2022-11-20 | $54.4B | $2.6B | $1.1B | $1.6B | 2.9% |
| 2023-02-12 | $55.3B | $3.2B | $890.0M | $2.3B | 4.2% |
| 2023-05-07 | $53.6B | $1.5B | $820.0M | $721.0M | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $6.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash flow decline
Operating cash flow for the current quarter was lower than the prior quarter, while revenue also decreased. Capital expenditure was slightly lower, but the drop in operating cash flow drove a lower free cash flow margin.
The weaker sequential cash conversion suggests reduced cash generation efficiency this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, and operating cash flow declined more sharply, leading to a lower free cash flow margin. Capital expenditure decreased slightly, but the reduction in operating cash flow had a larger impact on free cash flow.
Sequentially, free cash flow and margin decreased from the preceding quarter. Year-over-year, both free cash flow and margin increased compared to the same quarter last year.
Monitor the trend in operating cash flow relative to revenue, as the sequential decline was notable.