Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin widened in both comparisons.
- Revenue and operating cash flow both increased, while capital expenditure was higher sequentially but roughly stable year over year. The resulting free cash flow rose, and the free cash flow margin strengthened.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year ago, each of these metrics also improved, with a notably larger gap in free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$71.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$21.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.7B
Cash generated by operations before capital spending.
CapEx
$6.9B
Capital spending and related asset purchases.
FCF margin
29.2%
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 | $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% |
| 2023-06-30 | $74.6B | $28.7B | $6.9B | $21.8B | 29.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | 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.
Operating Cash Flow Strength
Operating cash flow increased in both sequential and year-over-year comparisons, outpacing the rise in capital expenditure. This was the strongest observable contributor to free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure was higher sequentially but roughly stable year over year. The resulting free cash flow rose, and the free cash flow margin strengthened.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year ago, each of these metrics also improved, with a notably larger gap in free cash flow margin.
Monitor capital expenditure trends, as the quarter's level was higher than the immediate prior quarter.