Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and improved from a year earlier. Operating cash flow turned negative, leading to a larger free cash flow deficit and a weakened free cash flow margin.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow was negative, and capital expenditure remained elevated, resulting in a negative free cash flow and a free cash flow margin that was worse than both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow shifted from positive to negative, causing free cash flow to be more negative and the margin to weaken. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, resulting in a larger free cash flow deficit and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$260.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$910.0M
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
-21.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $11.4B | $3.1B | $1.8B | $1.3B | 11.4% |
| 2023-06-30 | $14.2B | $3.8B | $1.4B | $2.4B | 16.8% |
| 2023-09-30 | $14.5B | $880.0M | $1.8B | -$962.0M | -6.6% |
| 2023-12-31 | $13.6B | -$910.0M | $2.1B | -$3.0B | -21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -496.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.2% | 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.
Negative Operating Cash Flow
Operating cash flow turned negative this quarter, a significant shift from positive levels in both the prior quarter and the same quarter last year. This was the strongest observable driver of the larger free cash flow deficit.
The negative operating cash flow directly caused free cash flow to be more negative despite a lower capital expenditure compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow was negative, and capital expenditure remained elevated, resulting in a negative free cash flow and a free cash flow margin that was worse than both comparison periods.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow shifted from positive to negative, causing free cash flow to be more negative and the margin to weaken. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, resulting in a larger free cash flow deficit and a weaker margin.
Monitor whether operating cash flow can return to positive levels in the next quarter, as it is the primary driver of free cash flow.