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 the prior quarter and the same period last year. Free cash flow margin improved, reflecting higher cash generation relative to revenue.
- Operating cash flow grew faster than revenue, while capital expenditure rose at a slower pace, resulting in a higher free cash flow margin. The conversion of revenue into free cash flow strengthened.
- Sequentially, all metrics improved, with operating cash flow and free cash flow both higher. Year-over-year, the same pattern held, and the margin exceeded the prior year's level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$59.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.8B
Cash generated by operations before capital spending.
CapEx
$8.9B
Capital spending and related asset purchases.
FCF margin
35.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $56.2B | $28.8B | $8.9B | $19.8B | 35.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Growth
Operating cash flow expanded at a notable pace, outpacing the increase in capital spending, which drove free cash flow higher and improved the margin.
This contributed to a stronger cash conversion efficiency for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, while capital expenditure rose at a slower pace, resulting in a higher free cash flow margin. The conversion of revenue into free cash flow strengthened.
Sequentially, all metrics improved, with operating cash flow and free cash flow both higher. Year-over-year, the same pattern held, and the margin exceeded the prior year's level.
The filing context notes that capital expenditure is a material cash commitment, so its future trajectory bears watching.