Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin declined versus the prior quarter but was lower than the year-ago quarter, driven by a decrease in operating cash flow relative to revenue.
- Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue weakened compared to both periods.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$350.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $43.7B | $1.9B | $350.0M | $1.6B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.9B | 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 decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This reduction was the most observable factor behind the weaker free cash flow and free cash flow margin.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue weakened compared to both periods.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were also lower.
Monitor the trend in operating cash flow relative to revenue, as its decline drove a lower free cash flow margin in the current quarter.