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 compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow. Revenue was lower than the preceding quarter but above the year-ago level.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin strengthened as free cash flow grew relative to revenue.
- Compared to the prior quarter, revenue was lower while free cash flow margin improved; operating cash flow and free cash flow were both lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$826.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$507.0M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $5.0B | $1.6B | $372.0M | $1.2B | 23.9% |
| 2022-09-30 | $4.9B | $915.0M | $365.0M | $550.0M | 11.2% |
| 2022-12-31 | $4.2B | $1.4B | $477.0M | $927.0M | 22.3% |
| 2023-03-31 | $3.4B | $1.3B | $507.0M | $826.0M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.1B | 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 Growth
Operating cash flow was higher than the same quarter last year, which directly supported the increase in free cash flow and margin.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin strengthened as free cash flow grew relative to revenue.
Compared to the prior quarter, revenue was lower while free cash flow margin improved; operating cash flow and free cash flow were both lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin all increased.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher than the year-ago level.