Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and weaker than both the prior quarter and the same quarter last year. Revenue, operating cash flow, and free cash flow margin all declined.
- Operating cash flow was lower than the previous quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter. This resulted in a more negative free cash flow and a lower free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow decreased, capital expenditure increased, and free cash flow became more negative. Versus the year-ago quarter, all metrics weakened except capital expenditure, which was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$734.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.0M
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
-27.3%
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 | $3.8B | $69.2M | $977.1M | -$908.0M | -23.9% |
| 2023-06-30 | $2.6B | $578.1M | $1.1B | -$484.2M | -18.4% |
| 2023-09-30 | $2.8B | $521.9M | $1.1B | -$564.2M | -20.2% |
| 2023-12-31 | $2.7B | $477.0M | $1.2B | -$734.2M | -27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Declining operating cash flow
Operating cash flow fell from the prior quarter and was significantly lower than the same quarter last year, while capital expenditure increased. This combination drove the free cash flow deeper into negative territory.
The continued weakening of operating cash flow is a key factor in the free cash flow deterioration.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the previous quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter. This resulted in a more negative free cash flow and a lower free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow decreased, capital expenditure increased, and free cash flow became more negative. Versus the year-ago quarter, all metrics weakened except capital expenditure, which was higher.
Monitor the trajectory of operating cash flow given its sustained decline relative to both the prior quarter and the year-ago period.