Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and was higher than a year ago.
- Operating cash flow as a percentage of revenue improved markedly, leading to a free cash flow margin that was positive and higher than both comparison periods. Capital expenditure was lower than the prior quarter but higher than a year ago, yet the strong operating cash flow more than offset the increase.
- Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure decreased, and free cash flow turned positive. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$34.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$15.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$16.3B
Cash generated by operations before capital spending.
CapEx
$760.0M
Capital spending and related asset purchases.
FCF margin
16.9%
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 | $80.3B | $6.9B | $657.0M | $6.2B | 7.7% |
| 2022-09-30 | $80.9B | $18.5B | $724.0M | $17.8B | 22.0% |
| 2022-12-31 | $82.8B | -$4.5B | $866.0M | -$5.4B | -6.5% |
| 2023-03-31 | $91.9B | $16.3B | $760.0M | $15.6B | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 277.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.7B | 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 strength
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, driving free cash flow higher despite a year-over-year increase in capital expenditure.
The higher operating cash flow was the primary factor behind the positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved markedly, leading to a free cash flow margin that was positive and higher than both comparison periods. Capital expenditure was lower than the prior quarter but higher than a year ago, yet the strong operating cash flow more than offset the increase.
Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure decreased, and free cash flow turned positive. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin also higher.
Monitor the level of capital expenditure relative to operating cash flow, as it increased year over year while operating cash flow also grew.