Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the most recent quarter, free cash flow turned negative as operating cash flow fell sharply while capital expenditure remained elevated. Revenue was nearly unchanged from both the prior quarter and the same quarter one year earlier.
- Revenue was stable, but operating cash flow was substantially lower than in the preceding quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in a negative free cash flow and a negative free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow weakened from a positive figure to a negative figure, and the free cash flow margin also turned negative. Versus the same quarter one year earlier, free cash flow was lower and the margin deteriorated from a small positive to a negative value.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$552.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$449.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$504.0M
Cash generated by operations before capital spending.
CapEx
$953.0M
Capital spending and related asset purchases.
FCF margin
-1.3%
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 |
|---|---|---|---|---|---|
| 2022-11-05 | $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% |
| 2023-11-04 | $34.0B | $504.0M | $953.0M | -$449.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -69.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | 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 decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, while capital expenditure rose. This combination drove free cash flow into negative territory.
The decline in operating cash flow was the primary factor behind the negative free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was substantially lower than in the preceding quarter and the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in a negative free cash flow and a negative free cash flow margin.
Compared with the immediately preceding quarter, free cash flow weakened from a positive figure to a negative figure, and the free cash flow margin also turned negative. Versus the same quarter one year earlier, free cash flow was lower and the margin deteriorated from a small positive to a negative value.
Monitor the sustainability of operating cash flow given its sharp decline relative to the stable revenue base.