Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from the prior quarter, driving a large free cash flow and a high margin. Revenue was lower than both the prior quarter and the year-ago quarter.
- Revenue declined, but operating cash flow improved markedly, resulting in a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the margin improved sharply. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were all higher, while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.8B
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
188.0%
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 | $5.1B | -$7.9B | $241.0M | -$8.2B | -160.7% |
| 2022-09-30 | $5.5B | $9.1B | $232.0M | $8.8B | 160.4% |
| 2022-12-31 | $5.5B | -$2.1B | $183.0M | -$2.3B | -41.7% |
| 2023-03-31 | $5.1B | $9.8B | $159.0M | $9.6B | 188.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 600.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 Reversal
Operating cash flow improved from a negative figure in the prior quarter to a positive figure, and was also higher than the year-ago quarter. This was the strongest observable driver of the quarter's free cash flow.
The improvement in operating cash flow was the primary factor behind the large free cash flow and the elevated margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined, but operating cash flow improved markedly, resulting in a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than both comparison periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the margin improved sharply. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were all higher, while revenue was lower.
Monitor whether operating cash flow can sustain its positive level given the lower revenue environment.