Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from the prior quarter but was slightly lower than the year-ago period.
- Operating cash flow as a percentage of revenue improved from the prior quarter, reflecting higher cash generation relative to sales. Capital expenditure was lower than the prior quarter, contributing to the increase in free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to a higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$80.0M
Capital spending and related asset purchases.
FCF margin
41.8%
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 | $5.8B | $3.9B | $111.0M | $3.7B | 65.1% |
| 2022-12-31 | $5.8B | $3.1B | $130.0M | $3.0B | 51.1% |
| 2023-03-31 | $5.7B | $1.9B | $110.0M | $1.8B | 31.5% |
| 2023-06-30 | $6.3B | $2.7B | $80.0M | $2.6B | 41.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.4B | 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 Expansion
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary support for free cash flow growth.
The higher operating cash flow enabled a larger free cash flow despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved from the prior quarter, reflecting higher cash generation relative to sales. Capital expenditure was lower than the prior quarter, contributing to the increase in free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to a higher capital expenditure.
Monitor the trend in capital expenditure, as it increased from the year-ago level and can influence future free cash flow margins.