Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to both the prior quarter and the same quarter last year. Operating cash flow turned positive, contributing to a higher free cash flow and an improved margin compared to both periods.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow rose sharply, capital expenditure was lower than a year ago but higher than the prior quarter. The result was a positive free cash flow and a free cash flow margin that improved from both comparison periods.
- Compared to the immediately preceding quarter, the company moved from negative to positive free cash flow, with margins improving from negative to positive. Versus the same quarter one year earlier, free cash flow and margin both increased, supported by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.4B
Cash generated by operations before capital spending.
CapEx
$984.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 | $80.6B | $5.4B | $408.0M | $5.0B | 6.2% |
| 2022-09-30 | $81.2B | $9.1B | $580.0M | $8.5B | 10.5% |
| 2022-12-31 | $83.8B | -$2.0B | $688.0M | -$2.6B | -3.1% |
| 2023-03-31 | $85.3B | $7.4B | $984.0M | $6.5B | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 301.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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 Turnaround
Operating cash flow improved from negative to positive, a key driver of the free cash flow recovery. The increase over the prior quarter was the strongest observable change among the metrics.
This turnaround directly enabled a transition to positive free cash flow and a higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow rose sharply, capital expenditure was lower than a year ago but higher than the prior quarter. The result was a positive free cash flow and a free cash flow margin that improved from both comparison periods.
Compared to the immediately preceding quarter, the company moved from negative to positive free cash flow, with margins improving from negative to positive. Versus the same quarter one year earlier, free cash flow and margin both increased, supported by higher operating cash flow.
Monitor the effective income tax rate, which was higher in the current quarter compared to the same quarter last year, as noted in the filing.