Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was negative, with operating cash flow positive but significantly lower than the prior quarter, while capital expenditure increased. Compared to the same quarter last year, free cash flow improved from a larger negative position, driven by a shift to positive operating cash flow.
- Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow as a proportion of revenue was lower than the prior quarter but improved relative to the year-ago period, and capital expenditure increased, resulting in a negative free cash flow margin.
- Sequentially, free cash flow turned from positive to negative as operating cash flow weakened and capital expenditure rose. Year over year, free cash flow improved as operating cash flow changed from negative to positive, despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$849.0M
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
-12.9%
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 |
|---|---|---|---|---|---|
| 2022-02-28 | $10.5B | $3.8B | $1.1B | $2.7B | 26.1% |
| 2022-05-31 | $42.4B | $4.0B | $1.4B | $2.6B | 6.0% |
| 2022-08-31 | $11.4B | $6.4B | $1.7B | $4.7B | 40.8% |
| 2022-11-30 | $12.3B | $849.0M | $2.4B | -$1.6B | -12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -91.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.8% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, contributing substantially to the negative free cash flow. The filing notes significant cash used for capital expenditures during the first half of the fiscal year, alongside acquisition-related outflows.
The elevated capital expenditure turned free cash flow negative this quarter, even though operating cash flow was positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow as a proportion of revenue was lower than the prior quarter but improved relative to the year-ago period, and capital expenditure increased, resulting in a negative free cash flow margin.
Sequentially, free cash flow turned from positive to negative as operating cash flow weakened and capital expenditure rose. Year over year, free cash flow improved as operating cash flow changed from negative to positive, despite higher capital expenditure.
Monitor the gap between capital expenditure and operating cash flow, which widened this quarter and was the primary factor behind the negative free cash flow.