Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than both the prior quarter and the same quarter last year. The free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the proportion of revenue converted into free cash flow after capital spending.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared to the same quarter last year, all metrics including revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$38.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$10.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$11.0B
Cash generated by operations before capital spending.
CapEx
$829.0M
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $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% |
| 2023-06-30 | $92.9B | $11.0B | $829.0M | $10.2B | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash generation improvement
Free cash flow and operating cash flow were both higher compared to the same quarter one year earlier, with the free cash flow margin also improving. This represents a stronger cash conversion relative to the prior year period.
The year-over-year increase in free cash flow was supported by higher operating cash flow and a moderate rise in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates the proportion of revenue converted into free cash flow after capital spending.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared to the same quarter last year, all metrics including revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.