Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and higher than the same quarter last year. Free cash flow improved significantly from the prior quarter but was lower than the same quarter last year.
- Operating cash flow was substantially higher than the prior quarter, leading to a much higher free cash flow margin despite a modest increase in capital expenditure. Compared to the same quarter last year, operating cash flow was lower, and capital expenditure was higher, resulting in a lower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin improved markedly, driven by a strong increase in operating cash flow. Versus the same quarter last year, free cash flow and margin weakened, as operating cash flow declined while capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$57.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.4B
Cash generated by operations before capital spending.
CapEx
$6.6B
Capital spending and related asset purchases.
FCF margin
33.7%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $51.9B | $24.6B | $6.9B | $17.8B | 34.2% |
| 2022-09-30 | $50.1B | $23.2B | $6.3B | $16.9B | 33.7% |
| 2022-12-31 | $52.7B | $11.2B | $6.3B | $4.9B | 9.3% |
| 2023-03-31 | $52.9B | $24.4B | $6.6B | $17.8B | 33.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.6B | 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 rebounded strongly from the prior quarter, more than offsetting a modest rise in capital expenditure and driving a substantial improvement in free cash flow and margin.
This recovery was the primary factor behind the quarter's higher free cash flow compared to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than the prior quarter, leading to a much higher free cash flow margin despite a modest increase in capital expenditure. Compared to the same quarter last year, operating cash flow was lower, and capital expenditure was higher, resulting in a lower free cash flow margin.
Compared to the prior quarter, free cash flow and margin improved markedly, driven by a strong increase in operating cash flow. Versus the same quarter last year, free cash flow and margin weakened, as operating cash flow declined while capital expenditure rose.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending this quarter contributed to a lower free cash flow margin versus the prior year.