Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus the previous quarter, and operating cash flow turned positive, both contributing to a less negative free cash flow. Capital expenditure was lower than both the prior quarter and the year-ago quarter, aiding the cash flow improvement.
- Revenue increased while operating cash flow swung from negative to positive, resulting in a free cash flow loss that narrowed considerably from the prior quarter. The free cash flow margin improved sequentially but remained negative.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved; capital expenditure was lower. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were both higher, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$16.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$5.9B
Capital spending and related asset purchases.
FCF margin
-23.8%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $15.3B | $1.0B | $7.3B | -$6.3B | -40.9% |
| 2022-12-31 | $14.0B | $7.7B | $5.7B | $2.0B | 14.3% |
| 2023-04-01 | $11.7B | -$1.8B | $7.4B | -$9.2B | -78.5% |
| 2023-07-01 | $12.9B | $2.8B | $5.9B | -$3.1B | -23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -208.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.5% | 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 improvement
Operating cash flow turned from a sizable outflow in the prior quarter to a meaningful inflow, the strongest observable change among the supplied metrics. This shift was the primary factor behind the narrower free cash flow deficit.
The positive operating cash flow reduced reliance on external funding for capital expenditure, improving the overall cash position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow swung from negative to positive, resulting in a free cash flow loss that narrowed considerably from the prior quarter. The free cash flow margin improved sequentially but remained negative.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved; capital expenditure was lower. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were both higher, while capital expenditure was also lower.
Monitor the relationship between capital expenditure and operating cash flow, as the gap between them has narrowed but capital spending still exceeds operating cash generation.