Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter but was lower than the year-ago quarter.
- Operating cash flow as a proportion of revenue improved compared to the prior quarter but weakened versus the same quarter last year. Capital expenditure was higher than both comparison periods, resulting in a free cash flow margin that was positive but lower than the year-ago level.
- Compared to the prior quarter, revenue was lower while operating cash flow was higher, leading to a shift from negative to positive free cash flow. Versus the same quarter last year, revenue and operating cash flow were both lower, and free cash flow was lower despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
0.1%
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 | $8.4B | $1.4B | $2.3B | -$851.0M | -10.2% |
| 2022-12-31 | $7.0B | $1.3B | $2.4B | -$1.1B | -16.1% |
| 2023-03-31 | $6.5B | $844.0M | $1.9B | -$1.0B | -15.5% |
| 2023-06-30 | $5.7B | $2.1B | $2.0B | $8.0M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.6% | 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 recovery
Operating cash flow improved substantially from the prior quarter, driving the shift to positive free cash flow. This was the strongest observable change among the metrics.
The improvement in operating cash flow was the primary factor enabling positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved compared to the prior quarter but weakened versus the same quarter last year. Capital expenditure was higher than both comparison periods, resulting in a free cash flow margin that was positive but lower than the year-ago level.
Compared to the prior quarter, revenue was lower while operating cash flow was higher, leading to a shift from negative to positive free cash flow. Versus the same quarter last year, revenue and operating cash flow were both lower, and free cash flow was lower despite higher capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as it remains elevated compared to both prior periods.