Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sharply versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow. Revenue also increased compared with both periods, while capital expenditure rose only modestly.
- Operating cash flow grew faster than revenue, lifting the free cash flow margin. Capital expenditure remained relatively stable, allowing most of the operating cash flow increase to flow through to free cash flow.
- Compared with the prior quarter, free cash flow and margin both improved, with operating cash flow higher and capital expenditure essentially flat. Versus the same quarter last year, free cash flow and margin also strengthened, supported by higher operating cash flow and a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.3B
Cash generated by operations before capital spending.
CapEx
$734.0M
Capital spending and related asset purchases.
FCF margin
22.4%
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 | $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% |
| 2023-06-30 | $20.6B | $5.3B | $734.0M | $4.6B | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.1% | 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 compared with both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred alongside higher revenue.
The stronger operating cash flow directly boosted free cash flow and margin, making it the most observable driver of the quarter's performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, lifting the free cash flow margin. Capital expenditure remained relatively stable, allowing most of the operating cash flow increase to flow through to free cash flow.
Compared with the prior quarter, free cash flow and margin both improved, with operating cash flow higher and capital expenditure essentially flat. Versus the same quarter last year, free cash flow and margin also strengthened, supported by higher operating cash flow and a modest increase in capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase could pressure free cash flow conversion.