Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin improved compared to both the prior quarter and the same quarter last year. Operating cash flow grew more than capital expenditure, resulting in higher free cash flow.
- Operating cash flow was higher than capital expenditure, leading to positive free cash flow. The free cash flow margin was higher than both comparison periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased. Versus the same quarter a year ago, the same metrics were higher, and the free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$318.5M
Capital spending and related asset purchases.
FCF margin
5.7%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $19.1B | $158.6M | $167.3M | -$8.7M | -0.0% |
| 2022-12-31 | $18.6B | $344.9M | $142.4M | $202.5M | 1.1% |
| 2023-04-01 | $18.9B | $922.3M | $164.8M | $757.5M | 4.0% |
| 2023-07-01 | $19.7B | $1.4B | $318.5M | $1.1B | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Stronger operating cash flow
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting a higher free cash flow.
The improvement in free cash flow margin was driven by the increase in operating cash flow relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, leading to positive free cash flow. The free cash flow margin was higher than both comparison periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased. Versus the same quarter a year ago, the same metrics were higher, and the free cash flow margin also improved.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure increased sequentially.