Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and improved significantly from the prior quarter, driven by a sharp recovery in operating cash flow and controlled capital expenditure. Compared with the same quarter last year, free cash flow and margin both increased.
- Revenue growth supported higher operating cash flow, while capital expenditure declined slightly, leading to improved free cash flow and a healthier cash conversion margin.
- Compared with the preceding quarter, operating cash flow swung from negative to positive, and free cash flow shifted from a deficit to a surplus. Versus the same quarter last year, both operating cash flow and free cash flow were higher, with an enhanced margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$932.0M
Capital spending and related asset purchases.
FCF margin
6.6%
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 |
|---|---|---|---|---|---|
| 2022-06-11 | $20.2B | $2.1B | $977.0M | $1.1B | 5.3% |
| 2022-09-03 | $22.0B | $4.4B | $1.1B | $3.4B | 15.3% |
| 2023-03-25 | $17.8B | -$392.0M | $581.0M | -$973.0M | -5.5% |
| 2023-06-17 | $22.3B | $2.4B | $932.0M | $1.5B | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Operating Cash Flow Recovery
Operating cash flow turned strongly positive this quarter after a negative prior quarter, and also exceeded the level from one year earlier. This recovery was the primary factor behind the improvement in free cash flow.
The recovery in operating cash flow enabled free cash flow to turn positive and achieve a higher margin compared with both the prior quarter and the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported higher operating cash flow, while capital expenditure declined slightly, leading to improved free cash flow and a healthier cash conversion margin.
Compared with the preceding quarter, operating cash flow swung from negative to positive, and free cash flow shifted from a deficit to a surplus. Versus the same quarter last year, both operating cash flow and free cash flow were higher, with an enhanced margin.
Monitor whether operating cash flow can sustain its current strength after the prior quarter's deficit.