Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased year-over-year. Free cash flow improved versus both the prior and year-ago quarters, supported by a higher free cash flow margin.
- Operating cash flow decreased slightly from the prior quarter and also declined year-over-year, while capital expenditure was lower in both comparisons. The resulting free cash flow rose sequentially and annually, and the free cash flow margin improved from twenty-one point one percent to twenty-four point seven percent sequentially and from twenty-two point five percent a year ago.
- Compared to the immediately preceding quarter, revenue was lower but free cash flow was higher due to lower capital expenditure and a nearly stable operating cash flow. Versus the same quarter one year earlier, revenue was higher while operating cash flow was lower, yet free cash flow improved as capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$61.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$23.5B
Cash generated by operations before capital spending.
CapEx
$6.3B
Capital spending and related asset purchases.
FCF margin
24.7%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $69.7B | $19.4B | $6.8B | $12.6B | 18.1% |
| 2022-09-30 | $69.1B | $23.4B | $7.3B | $16.1B | 23.3% |
| 2022-12-31 | $76.0B | $23.6B | $7.6B | $16.0B | 21.1% |
| 2023-03-31 | $69.8B | $23.5B | $6.3B | $17.2B | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower capital expenditure
Capital expenditure in the current quarter was lower than both the prior quarter and the year-ago quarter. This reduction was the strongest observable factor behind the sequential and annual improvement in free cash flow.
The lower capital expenditure directly boosted free cash flow and free cash flow margin despite a moderate decline in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased slightly from the prior quarter and also declined year-over-year, while capital expenditure was lower in both comparisons. The resulting free cash flow rose sequentially and annually, and the free cash flow margin improved from twenty-one point one percent to twenty-four point seven percent sequentially and from twenty-two point five percent a year ago.
Compared to the immediately preceding quarter, revenue was lower but free cash flow was higher due to lower capital expenditure and a nearly stable operating cash flow. Versus the same quarter one year earlier, revenue was higher while operating cash flow was lower, yet free cash flow improved as capital expenditure decreased.
Monitor the trend in operating cash flow, as it declined year-over-year despite higher revenue.