Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while revenue was slightly lower, lifting free cash flow and margin. The quarter's free cash flow margin was higher than both the prior quarter and the same quarter a year ago.
- Revenue was slightly lower than the prior quarter, but operating cash flow increased substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both comparison periods, yet the strong operating cash flow more than offset this increase.
- Compared with the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were both higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$293.0M
Capital spending and related asset purchases.
FCF margin
4.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $67.2B | -$941.0M | $71.0M | -$1.0B | -1.5% |
| 2022-09-30 | $70.2B | $1.1B | $86.0M | $1.0B | 1.5% |
| 2022-12-31 | $70.5B | $1.7B | $108.0M | $1.6B | 2.2% |
| 2023-03-31 | $68.9B | $3.3B | $293.0M | $3.0B | 4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 385.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$916.0M | 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 substantially higher than the prior quarter and also improved compared with the same quarter a year ago, driving the increase in free cash flow and margin despite a slight dip in revenue from the prior quarter.
The stronger operating cash flow was the primary factor behind the quarter's improved free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow increased substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both comparison periods, yet the strong operating cash flow more than offset this increase.
Compared with the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were both higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin all improved.
Monitor whether the elevated capital expenditure level persists in future quarters, as it was higher than both the prior quarter and the year-ago period.