Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased and operating cash flow turned strongly positive, driving free cash flow to a healthy margin. Compared to the prior quarter, cash generation improved significantly, while year-over-year results also strengthened.
- Cash conversion from revenue improved substantially, as operating cash flow became positive and free cash flow margin rose sharply. Capital expenditure was stable relative to the prior quarter, allowing most of the operating cash flow to convert into free cash flow.
- Relative to the immediately preceding quarter, both operating cash flow and free cash flow improved from negative levels to positive amounts, with free cash flow margin rising correspondingly. Compared to the same quarter one year earlier, revenue was higher and all cash flow metrics increased, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.5B
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
14.6%
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 | $38.6B | $2.5B | $295.0M | $2.2B | 5.6% |
| 2022-09-30 | $39.9B | $4.9B | $305.0M | $4.6B | 11.6% |
| 2022-12-31 | $39.9B | -$1.5B | $298.0M | -$1.8B | -4.5% |
| 2023-03-31 | $42.2B | $6.5B | $301.0M | $6.2B | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 307.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.1B | 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 Recovery
Operating cash flow shifted from a negative level in the prior quarter to a positive figure this quarter, while capital expenditure remained nearly flat. This turnaround was the most prominent observable factor behind the improvement in free cash flow and its margin.
The swing in operating cash flow alone accounted for the majority of the increase in free cash flow from the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue improved substantially, as operating cash flow became positive and free cash flow margin rose sharply. Capital expenditure was stable relative to the prior quarter, allowing most of the operating cash flow to convert into free cash flow.
Relative to the immediately preceding quarter, both operating cash flow and free cash flow improved from negative levels to positive amounts, with free cash flow margin rising correspondingly. Compared to the same quarter one year earlier, revenue was higher and all cash flow metrics increased, leading to an improved free cash flow margin.
Monitor whether operating cash flow can sustain its current positive trajectory in the next quarter, given the prior quarter’s negative swing.