Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive, driving a substantial free cash flow margin. Revenue increased compared to both the prior quarter and the same quarter last year, while capital expenditure decreased.
- Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, and capital expenditure was lower, resulting in a large positive free cash flow and a significantly improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from a minimal level to strongly positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
24.2%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $23.7B | $959.0M | $279.0M | $680.0M | 2.9% |
| 2022-09-30 | $22.8B | $8.5B | $288.0M | $8.2B | 35.8% |
| 2022-12-31 | $22.4B | -$5.1B | $275.0M | -$5.4B | -24.1% |
| 2023-03-31 | $26.7B | $6.7B | $223.0M | $6.5B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 521.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.1B | 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 Recovery
Operating cash flow improved markedly from negative in the prior quarter and from a very low level a year ago, becoming the primary contributor to free cash flow.
This recovery was the strongest observable driver of the quarter's free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, and capital expenditure was lower, resulting in a large positive free cash flow and a significantly improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow turned from a minimal level to strongly positive.
Monitor the sustainability of the positive operating cash flow level in upcoming quarters.