Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow improved significantly sequentially and relative to the year-ago period, driven by higher operating cash flow.
- Operating cash flow rose compared to both the prior quarter and the year-ago quarter, while capital expenditure was stable sequentially but higher than a year ago. As a result, free cash flow increased and its margin improved sequentially, though it remained slightly below the year-ago level.
- Sequentially, free cash flow and margin improved, driven by higher operating cash flow with flat capital expenditure. Compared to a year ago, free cash flow increased but margin was lower due to higher capital expenditure growth relative to revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $21.5B | $5.1B | $1.8B | $3.3B | 15.4% |
| 2022-12-31 | $24.3B | $3.3B | $1.9B | $1.4B | 5.8% |
| 2023-03-31 | $23.3B | $2.5B | $2.1B | $441.0M | 1.9% |
| 2023-06-30 | $24.9B | $3.1B | $2.1B | $1.0B | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $14.8B | 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 Growth
Operating cash flow increased to a higher level than both the prior quarter and the same quarter last year, providing the primary support for free cash flow improvement.
Free cash flow margin improved sequentially as a result of the operating cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, while capital expenditure was stable sequentially but higher than a year ago. As a result, free cash flow increased and its margin improved sequentially, though it remained slightly below the year-ago level.
Sequentially, free cash flow and margin improved, driven by higher operating cash flow with flat capital expenditure. Compared to a year ago, free cash flow increased but margin was lower due to higher capital expenditure growth relative to revenue.
Monitor capital expenditure trends, as they remained elevated compared to a year ago while revenue growth continues.