Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by higher operating cash flow and lower capital spending. Compared to the same quarter one year earlier, free cash flow was lower but the margin improved as revenue declined less than operating cash flow.
- Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, resulting in a significant improvement in free cash flow and free cash flow margin. Revenue was slightly higher than the prior quarter but lower than the year-ago period.
- Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Versus the same quarter one year earlier, free cash flow was lower but the margin was higher, reflecting a smaller decline in operating cash flow relative to revenue and reduced capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$989.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
9.6%
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 | $12.3B | $1.4B | $439.0M | $975.0M | 8.0% |
| 2022-12-31 | $10.2B | $1.6B | $473.0M | $1.1B | 11.1% |
| 2023-03-31 | $10.2B | $482.0M | $352.0M | $130.0M | 1.3% |
| 2023-06-30 | $10.3B | $1.3B | $301.0M | $989.0M | 9.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 increased substantially from the prior quarter, while capital expenditure declined, leading to a sharp increase in free cash flow.
This improvement was the primary factor behind the quarter's free cash flow margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter, while capital expenditure decreased, resulting in a significant improvement in free cash flow and free cash flow margin. Revenue was slightly higher than the prior quarter but lower than the year-ago period.
Compared to the immediately preceding quarter, free cash flow and margin improved markedly. Versus the same quarter one year earlier, free cash flow was lower but the margin was higher, reflecting a smaller decline in operating cash flow relative to revenue and reduced capital spending.
The company's capital allocation plans, including shareholder returns tied to free cash flow, warrant attention given the improved cash generation.