Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter one year earlier. Free cash flow turned positive from negative in the prior quarter, though the margin was lower than a year ago.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive, though lower than the same quarter one year earlier.
- Compared to the prior quarter, operating cash flow improved while capital expenditure decreased, resulting in a shift from negative to positive free cash flow. Relative to the same quarter one year earlier, free cash flow was higher but the margin was lower, as revenue grew more than proportionally.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $12.1B | $2.7B | $550.0M | $2.1B | 17.7% |
| 2022-09-30 | $12.9B | $741.0M | $1.3B | -$587.0M | -4.6% |
| 2022-12-31 | $12.4B | $1.2B | $2.5B | -$1.4B | -11.1% |
| 2023-03-31 | $11.4B | $3.1B | $1.8B | $1.3B | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -669.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.0B | 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 the prior quarter, while capital expenditure was lower, driving a positive swing in free cash flow.
This shift strengthened the company's cash generation and improved its financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was positive, though lower than the same quarter one year earlier.
Compared to the prior quarter, operating cash flow improved while capital expenditure decreased, resulting in a shift from negative to positive free cash flow. Relative to the same quarter one year earlier, free cash flow was higher but the margin was lower, as revenue grew more than proportionally.
Monitor capital expenditure commitments related to aircraft orders, as noted in the company's liquidity discussion.