Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year, while operating cash flow increased and capital expenditure decreased. This resulted in a substantial rise in free cash flow and an improvement in free cash flow margin.
- Revenue declined modestly, but operating cash flow rose and capital expenditure was reduced, yielding free cash flow that was higher than both comparison periods. The free cash flow margin expanded accordingly.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter last year, the same directional changes occurred, with free cash flow markedly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$2.8B
Capital spending and related asset purchases.
FCF margin
8.2%
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 | $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% |
| 2023-06-30 | $19.2B | $4.4B | $2.8B | $1.6B | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$71.2B | 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 and Operating Cash Flow Growth
The company reduced capital spending while generating higher cash from operations, lifting free cash flow. The filing notes that operating cash flow increased compared to the prior year.
This combination significantly improved free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined modestly, but operating cash flow rose and capital expenditure was reduced, yielding free cash flow that was higher than both comparison periods. The free cash flow margin expanded accordingly.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter last year, the same directional changes occurred, with free cash flow markedly higher.
Monitor revenue trends, as revenue was lower in both the sequential and year-over-year comparisons.