Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter marked a turnaround in free cash flow to positive, although the margin declined from the prior year. Operating cash flow improved significantly while capital expenditure remained elevated.
- Revenue growth drove higher operating cash flow, but capital expenditure increased proportionately, resulting in a modest free cash flow margin.
- Compared to the previous quarter, free cash flow swung from negative to positive, a clear improvement. However, relative to the same quarter last year, both free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
2.5%
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 | $3.0B | $757.0M | $1.2B | -$400.0M | -13.2% |
| 2022-09-30 | $3.1B | -$909.0M | $1.2B | -$2.1B | -67.2% |
| 2022-12-31 | $3.9B | -$313.0M | $1.8B | -$2.1B | -54.7% |
| 2023-03-31 | $5.9B | $2.0B | $1.8B | $150.0M | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 15.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.1% | 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 Recovery
The turnaround in operating cash flow from negative to positive was the strongest observable driver, reflecting improved cash generation from operations.
This recovery provided the basis for positive free cash flow, though partially offset by higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth drove higher operating cash flow, but capital expenditure increased proportionately, resulting in a modest free cash flow margin.
Compared to the previous quarter, free cash flow swung from negative to positive, a clear improvement. However, relative to the same quarter last year, both free cash flow and margin were lower.
Capital expenditure held steady sequentially but increased year over year; its sustainability warrants attention.