Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow with a weak margin. Revenue declined from the prior quarter but improved compared to the same quarter last year.
- Revenue of the current quarter failed to convert into positive free cash flow, as operating cash flow was insufficient to cover capital expenditure. The free cash flow margin remained negative, contrasting with a strongly positive margin in the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all sharply decreased, and the margin turned from positive to negative. Versus the same quarter one year ago, revenue increased, operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$515.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$133.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$572.0M
Cash generated by operations before capital spending.
CapEx
$705.0M
Capital spending and related asset purchases.
FCF margin
-5.5%
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 | $2.3B | $345.0M | $797.0M | -$452.0M | -19.9% |
| 2022-12-31 | $3.1B | $802.0M | $800.0M | $2.0M | 0.1% |
| 2023-03-31 | $3.8B | $1.8B | $739.0M | $1.1B | 29.2% |
| 2023-06-30 | $2.4B | $572.0M | $705.0M | -$133.0M | -5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -22.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.1% | 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 Insufficiency
Operating cash flow was lower than capital expenditure this quarter, driving negative free cash flow. This marks a reversal from the prior quarter when operating cash flow far exceeded capital spending.
The negative free cash flow margin indicates the company could not internally fund its capital investments this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of the current quarter failed to convert into positive free cash flow, as operating cash flow was insufficient to cover capital expenditure. The free cash flow margin remained negative, contrasting with a strongly positive margin in the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all sharply decreased, and the margin turned from positive to negative. Versus the same quarter one year ago, revenue increased, operating cash flow improved from negative to positive, capital expenditure was higher, and free cash flow was less negative with an improved margin.
Monitor whether operating cash flow consistently covers capital expenditure to sustain positive free cash flow.