Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow and free cash flow turned negative, resulting in a weakened cash conversion profile versus the preceding period.
- Cash conversion weakened significantly this quarter. Despite higher revenue, operating cash flow was negative, and after accounting for capital expenditure, free cash flow was also negative, yielding a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were substantially lower, shifting from positive to negative. Compared to the same quarter one year ago, revenue was higher, while operating cash flow and free cash flow were lower, though the free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$25.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.2B
Cash generated by operations before capital spending.
CapEx
$959.0M
Capital spending and related asset purchases.
FCF margin
-6.5%
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 | $91.9B | $16.3B | $760.0M | $15.6B | 16.9% |
| 2023-06-30 | $92.9B | $11.0B | $829.0M | $10.2B | 11.0% |
| 2023-09-30 | $92.4B | $6.9B | $838.0M | $6.1B | 6.6% |
| 2023-12-31 | $94.4B | -$5.2B | $959.0M | -$6.2B | -6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -112.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.1B | 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 Swing
The most significant observable driver was the sharp reversal in operating cash flow. It moved from a positive position in the prior quarter to a negative position in the current quarter, which directly drove free cash flow into negative territory.
This swing was the primary factor behind the weakened free cash flow margin compared to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened significantly this quarter. Despite higher revenue, operating cash flow was negative, and after accounting for capital expenditure, free cash flow was also negative, yielding a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were substantially lower, shifting from positive to negative. Compared to the same quarter one year ago, revenue was higher, while operating cash flow and free cash flow were lower, though the free cash flow margin was stable.
Monitor the trajectory of operating cash flow, which turned negative this quarter after a positive result in the prior period.