Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow was negative, driven by a negative operating cash flow while capital expenditure increased. Revenue was higher than both the preceding quarter and the same quarter a year earlier, but free cash flow margin weakened significantly.
- Revenue rose compared to the prior quarter, yet operating cash flow turned negative, resulting in a negative free cash flow and margin. Capital expenditure was higher than both the previous quarter and the year-ago period, further weighing on cash conversion.
- Compared to the preceding quarter, operating cash flow and free cash flow both weakened sharply, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and the free cash flow margin was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.6B
Cash generated by operations before capital spending.
CapEx
$911.0M
Capital spending and related asset purchases.
FCF margin
-3.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $85.3B | $7.4B | $984.0M | $6.5B | 7.6% |
| 2023-06-30 | $88.9B | $5.9B | $591.0M | $5.3B | 6.0% |
| 2023-09-30 | $89.8B | $2.7B | $545.0M | $2.2B | 2.4% |
| 2023-12-31 | $93.8B | -$2.6B | $911.0M | -$3.5B | -3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -173.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Turns Negative
Operating cash flow decreased sharply relative to both the prior quarter and the year-ago quarter, moving from a positive to a negative balance. This change, combined with higher capital expenditure, produced a negative free cash flow margin.
The company's cash conversion weakened, with free cash flow shifting from positive in the prior quarter to negative in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to the prior quarter, yet operating cash flow turned negative, resulting in a negative free cash flow and margin. Capital expenditure was higher than both the previous quarter and the year-ago period, further weighing on cash conversion.
Compared to the preceding quarter, operating cash flow and free cash flow both weakened sharply, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and the free cash flow margin was more negative.
Monitor the trajectory of operating cash flow, which swung from positive to negative and is the primary driver of the current cash flow shortfall.