Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow remained stable from the prior quarter, while free cash flow margin improved relative to the preceding quarter but was lower than the year-ago level.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the conversion of revenue into free cash flow after capital spending.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, and free cash flow was stable. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
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
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $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% |
| 2023-06-30 | $6.6B | $3.1B | $1.6B | $1.4B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow decline
Free cash flow was substantially lower than the same quarter last year, with revenue and operating cash flow lower and capital expenditure higher.
This represents a significant decrease from the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the conversion of revenue into free cash flow after capital spending.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, and free cash flow was stable. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher.
Capital expenditure increased relative to both the prior quarter and the year-ago quarter.