Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter and the year-ago quarter. Free cash flow was near zero, a significant improvement from the large negative figures in both comparison periods.
- Operating cash flow was slightly higher than capital expenditure, resulting in a near-zero free cash flow and a minimal negative free cash flow margin. This indicates that cash generation from operations was almost sufficient to cover capital spending.
- Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure decreased substantially, leading to a much improved free cash flow. Versus the same quarter last year, revenue and operating cash flow were lower, while capital expenditure was also lower, resulting in a less negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$146.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-0.1%
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 | $3.0B | $959.5M | $0 | $959.5M | 32.2% |
| 2023-06-30 | $2.8B | $866.4M | $30.4M | $836.0M | 29.4% |
| 2023-09-30 | $3.6B | $1.4B | $3.3B | -$1.9B | -53.9% |
| 2023-12-31 | $2.7B | $1.1B | $1.1B | -$3.7M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$25.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was significantly lower than both the prior quarter and the year-ago quarter. This reduction was the primary factor behind the improvement in free cash flow from deeply negative to near zero.
Lower capital spending directly narrowed the gap between operating cash flow and investment outlays, bringing free cash flow close to breakeven.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly higher than capital expenditure, resulting in a near-zero free cash flow and a minimal negative free cash flow margin. This indicates that cash generation from operations was almost sufficient to cover capital spending.
Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure decreased substantially, leading to a much improved free cash flow. Versus the same quarter last year, revenue and operating cash flow were lower, while capital expenditure was also lower, resulting in a less negative free cash flow.
Monitor the level of capital expenditure relative to operating cash flow, as the near-zero free cash flow depends on continued alignment between these two metrics.