Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was slightly lower than the prior quarter but comparable to the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow was higher despite slightly lower revenue, driven by lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher with both higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$3.0B
Capital spending and related asset purchases.
FCF margin
5.3%
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 | $19.7B | $4.2B | $3.6B | $637.0M | 3.2% |
| 2022-09-30 | $19.5B | $4.4B | $3.6B | $757.0M | 3.9% |
| 2022-12-31 | $20.3B | $4.3B | $3.4B | $953.0M | 4.7% |
| 2023-03-31 | $19.6B | $4.1B | $3.0B | $1.1B | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.3% | 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.
Capital Expenditure Reduction
Capital expenditure was lower than both the prior quarter and the year-ago quarter, contributing to the improvement in free cash flow despite a slight decline in revenue.
Lower capital expenditure directly boosted free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but comparable to the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow was higher despite slightly lower revenue, driven by lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher with both higher operating cash flow and lower capital expenditure.
Monitor changes in working capital, as the filing notes higher net cash outflows from working capital partially offsetting operating cash flow improvement.