Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved substantially compared to both the prior quarter and the same quarter last year, driven by stronger operating cash flow.
- Revenue rose while operating cash flow grew faster, resulting in a higher free cash flow margin. Capital expenditure was stable versus the prior quarter but higher than a year ago.
- This quarter's free cash flow and margin are higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved, while capital expenditure increased relative to the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $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% |
| 2023-06-30 | $15.9B | $2.5B | $1.2B | $1.2B | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.1B | 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 Improvement
Operating cash flow increased significantly compared to both prior periods, supported by favorable working capital changes including a decline in accounts receivable, as noted in the filing.
This drove a higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew faster, resulting in a higher free cash flow margin. Capital expenditure was stable versus the prior quarter but higher than a year ago.
This quarter's free cash flow and margin are higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved, while capital expenditure increased relative to the year-ago period.
Monitor the trajectory of capital expenditure given its year-over-year increase.