Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the preceding quarter and the year-ago period.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as free cash flow grew faster than revenue.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$730.0M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $19.5B | $3.7B | $692.0M | $3.0B | 15.5% |
| 2022-09-30 | $20.6B | $4.1B | $890.0M | $3.2B | 15.4% |
| 2022-12-31 | $20.8B | $3.6B | $708.0M | $2.9B | 13.8% |
| 2023-03-31 | $20.1B | $3.9B | $730.0M | $3.1B | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This drove a higher free cash flow and an improved margin.
The stronger operating cash flow was the primary factor behind the improved free cash flow margin.
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 rose as free cash flow grew faster than revenue.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with the margin also improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable in amount but its proportion to cash flow changed.