Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative this quarter, resulting in a negative free cash flow margin. Revenue was consistent with the prior quarter and higher than a year ago.
- Revenue stayed nearly flat, but operating cash flow swung from positive in the prior quarter to negative, driving free cash flow deeply negative. The free cash flow margin dropped from positive territory last quarter to negative this quarter.
- Compared to the preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow both weakened significantly and turned negative. Versus the same quarter one year earlier, revenue was higher, but the negative operating cash flow and free cash flow margins were both worse than the prior year's negative levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.0B
Cash generated by operations before capital spending.
CapEx
$326.0M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $42.8B | $2.6B | $319.0M | $2.3B | 5.4% |
| 2023-12-31 | $42.6B | -$3.0B | $326.0M | -$3.3B | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -385.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.4B | 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 Turn Negative
Operating cash flow shifted from a large positive in the prior quarter to a negative this quarter, despite revenue being nearly unchanged. This reversal was the strongest observable driver of the negative free cash flow.
Free cash flow turned negative and the margin worsened compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue stayed nearly flat, but operating cash flow swung from positive in the prior quarter to negative, driving free cash flow deeply negative. The free cash flow margin dropped from positive territory last quarter to negative this quarter.
Compared to the preceding quarter, revenue was slightly lower, while operating cash flow and free cash flow both weakened significantly and turned negative. Versus the same quarter one year earlier, revenue was higher, but the negative operating cash flow and free cash flow margins were both worse than the prior year's negative levels.
Monitor whether operating cash flow recovers to positive territory in the subsequent quarter, as it was the primary driver of the negative free cash flow.