Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by higher operating cash flow relative to revenue. Capital expenditure increased from both comparison periods.
- Revenue was lower than the prior quarter and the year-ago quarter, but operating cash flow was higher than the prior quarter and stable versus the year-ago quarter, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, revenue decreased while operating cash flow increased, leading to a higher free cash flow and margin. Versus the same quarter one year earlier, revenue was substantially lower but operating cash flow was unchanged, and free cash flow was slightly lower despite higher capital expenditure, yet the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$535.0M
Capital spending and related asset purchases.
FCF margin
32.7%
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 | $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% |
| 2023-06-30 | $3.1B | $1.6B | $535.0M | $1.0B | 32.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow margin expansion
The free cash flow margin rose compared to both the preceding quarter and the same quarter one year earlier, as operating cash flow remained resilient despite lower revenue.
This improvement indicates stronger cash generation efficiency per dollar of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and the year-ago quarter, but operating cash flow was higher than the prior quarter and stable versus the year-ago quarter, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, revenue decreased while operating cash flow increased, leading to a higher free cash flow and margin. Versus the same quarter one year earlier, revenue was substantially lower but operating cash flow was unchanged, and free cash flow was slightly lower despite higher capital expenditure, yet the margin improved.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.