Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow turned negative as capital expenditure remained elevated relative to operating cash flow.
- Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure was nearly equal to operating cash flow, resulting in a negative free cash flow and a weakened free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more sharply, turning free cash flow from positive to negative. Versus the same quarter last year, all metrics were lower except capital expenditure, which was substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$47.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-1.0%
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 | $5.2B | $2.8B | $790.0M | $2.0B | 37.7% |
| 2022-12-31 | $4.7B | $2.0B | $967.0M | $1.1B | 23.0% |
| 2023-03-31 | $4.4B | $1.2B | $982.0M | $178.0M | 4.1% |
| 2023-06-30 | $4.5B | $1.4B | $1.4B | -$47.0M | -1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | 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 intensity
Capital expenditure was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. The filing notes that capital expenditures were primarily for semiconductor manufacturing equipment and facilities as part of long-term capacity planning.
The elevated capital expenditure directly caused free cash flow to turn negative despite higher operating cash flow than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure was nearly equal to operating cash flow, resulting in a negative free cash flow and a weakened free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more sharply, turning free cash flow from positive to negative. Versus the same quarter last year, all metrics were lower except capital expenditure, which was substantially higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current level fully consumed operating cash flow.