Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year. Free cash flow improved versus the prior quarter but decreased from the year-ago level, while free cash flow margin weakened relative to the year-ago quarter and strengthened versus the prior quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter. Capital expenditure increased versus both comparison periods. Free cash flow was lower than the year-ago quarter but higher than the prior quarter, resulting in a free cash flow margin that was weaker year-over-year and improved sequentially.
- Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow increased. Compared to the same quarter one year earlier, revenue and free cash flow declined, while operating cash flow rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$578.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$926.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2022-08-13 | $34.6B | $1.3B | $685.0M | $640.0M | 1.8% |
| 2022-11-05 | $34.2B | $911.0M | $831.0M | $80.0M | 0.2% |
| 2023-01-28 | $34.8B | $1.2B | $817.0M | $343.0M | 1.0% |
| 2023-08-12 | $33.9B | $1.5B | $926.0M | $578.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -321.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.3B | 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 strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, which supported free cash flow despite increased capital expenditure.
Higher operating cash flow was the strongest observable driver of free cash flow improvement versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter. Capital expenditure increased versus both comparison periods. Free cash flow was lower than the year-ago quarter but higher than the prior quarter, resulting in a free cash flow margin that was weaker year-over-year and improved sequentially.
Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow increased. Compared to the same quarter one year earlier, revenue and free cash flow declined, while operating cash flow rose.
Monitor capital expenditure levels, as they exceeded both the prior quarter and the year-ago quarter.