Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
eBay's free cash flow improved markedly in the first quarter of fiscal 2023, driven by stronger operating cash flow. The free cash flow margin expanded significantly compared to both the prior quarter and the same quarter a year earlier.
- Revenue remained stable, while operating cash flow increased substantially, leading to a higher free cash flow despite a moderate rise in capital expenditure from the year-ago period. The free cash flow margin improved to a higher level than in either comparison period.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were higher, but capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$709.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$841.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
28.2%
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 | $2.4B | $228.0M | $111.0M | $117.0M | 4.8% |
| 2022-09-30 | $2.4B | $729.0M | $102.0M | $627.0M | 26.3% |
| 2022-12-31 | $2.5B | $684.0M | $153.0M | $531.0M | 21.2% |
| 2023-03-31 | $2.5B | $841.0M | $132.0M | $709.0M | 28.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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 Strength
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, while revenue was unchanged. The filing attributes the increase primarily to working capital movements and changes in non-cash items.
The stronger operating cash flow directly boosted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable, while operating cash flow increased substantially, leading to a higher free cash flow despite a moderate rise in capital expenditure from the year-ago period. The free cash flow margin improved to a higher level than in either comparison period.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were higher, but capital expenditure was also higher.
Monitor the trend in capital expenditure, as it increased from the year-ago level but decreased from the prior quarter.