Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased both sequentially and year over year, while free cash flow and free cash flow margin weakened from the prior quarter but improved from the same quarter last year. Operating cash flow declined sequentially but rose year over year, and capital expenditure was higher compared to both periods.
- Cash conversion weakened sequentially as operating cash flow declined despite higher revenue, while capital expenditure remained elevated, resulting in a lower free cash flow margin. Compared to the year-ago quarter, operating cash flow increased more than capital expenditure, leading to improved free cash flow and margin.
- Sequentially, free cash flow and margin declined significantly as operating cash flow fell and capital expenditure remained high. Year over year, free cash flow and margin improved modestly, driven by stronger operating cash flow despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$606.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $14.8B | $1.6B | $1.1B | $550.0M | 3.7% |
| 2022-09-30 | $15.0B | $3.0B | $1.1B | $1.9B | 12.6% |
| 2022-12-31 | $15.5B | $2.5B | $1.3B | $1.2B | 7.8% |
| 2023-03-31 | $15.6B | $1.8B | $1.2B | $606.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.0B | 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 Volatility
Operating cash flow decreased sequentially but increased year over year. The filing context points to changes in working capital items as a key factor behind the sequential decline, with a drop in working capital from the prior quarter end.
The sequential decline in operating cash flow was the strongest observable driver of the lower free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened sequentially as operating cash flow declined despite higher revenue, while capital expenditure remained elevated, resulting in a lower free cash flow margin. Compared to the year-ago quarter, operating cash flow increased more than capital expenditure, leading to improved free cash flow and margin.
Sequentially, free cash flow and margin declined significantly as operating cash flow fell and capital expenditure remained high. Year over year, free cash flow and margin improved modestly, driven by stronger operating cash flow despite higher capital expenditure.
Monitor changes in working capital, which contributed to the operating cash flow decline sequentially according to the filing context.