Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the preceding quarter but was lower than the same quarter one year earlier. Operating cash flow improved substantially, leading to a positive free cash flow margin after two consecutive negative periods.
- The conversion of revenue into cash from operations improved, as operating cash flow rose relative to revenue. Capital expenditure remained elevated, but the gap narrowed, resulting in a small positive free cash flow.
- Compared to the immediately preceding quarter, both operating cash flow and free cash flow turned positive, while capital expenditure was slightly lower. Versus the same quarter one year earlier, operating cash flow was higher and capital expenditure was lower, leading to a much improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$10.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$71.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.8B
Cash generated by operations before capital spending.
CapEx
$5.8B
Capital spending and related asset purchases.
FCF margin
0.5%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $14.2B | $5.8B | $5.8B | $71.0M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.6% | 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 Recovery
Operating cash flow rose significantly from both the prior quarter and the year-ago period, supported by higher revenue and improved cash generation.
This recovery was the primary factor behind the swing from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into cash from operations improved, as operating cash flow rose relative to revenue. Capital expenditure remained elevated, but the gap narrowed, resulting in a small positive free cash flow.
Compared to the immediately preceding quarter, both operating cash flow and free cash flow turned positive, while capital expenditure was slightly lower. Versus the same quarter one year earlier, operating cash flow was higher and capital expenditure was lower, leading to a much improved free cash flow margin.
The level of capital expenditure relative to operating cash flow, as it determines the sustainability of positive free cash flow.