Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow and margin were lower than both the preceding quarter and the same quarter one year earlier. Revenue and operating cash flow also declined, while capital expenditure remained steady compared to the prior quarter but was higher than the year-ago quarter.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, and capital expenditure was unchanged from the prior quarter and higher than a year ago, resulting in lower free cash flow and a weaker margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was unchanged. Relative to the same quarter one year earlier, all metrics except capital expenditure were lower, with capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
19.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $10.4B | $5.3B | $972.0M | $4.4B | 42.1% |
| 2022-09-30 | $9.4B | $4.3B | $1.1B | $3.1B | 33.3% |
| 2022-12-31 | $8.3B | $4.0B | $1.5B | $2.5B | 29.5% |
| 2023-03-31 | $7.1B | $2.9B | $1.5B | $1.4B | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure did not decrease from the prior quarter and was higher than a year ago, leading to a lower free cash flow.
Free cash flow margin weakened, reflecting less efficient cash generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, and capital expenditure was unchanged from the prior quarter and higher than a year ago, resulting in lower free cash flow and a weaker margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was unchanged. Relative to the same quarter one year earlier, all metrics except capital expenditure were lower, with capital expenditure higher.
Monitor the trend of capital expenditure, as it was higher than a year ago while revenue declined.