Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved sequentially but weakened year over year.
- Revenue and operating cash flow were lower than both the preceding quarter and the year-ago quarter. Capital expenditure decreased sequentially but increased slightly compared to last year, resulting in a free cash flow that was higher than the prior quarter but lower than the year-ago period.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased significantly, leading to a higher free cash flow and an improved margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$609.0M
Capital spending and related asset purchases.
FCF margin
7.6%
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 | $24.8B | $3.8B | $840.0M | $3.0B | 12.0% |
| 2022-09-30 | $24.2B | $2.5B | $890.0M | $1.6B | 6.6% |
| 2022-12-31 | $27.0B | $3.3B | $2.5B | $841.0M | 3.1% |
| 2023-03-31 | $22.9B | $2.4B | $609.0M | $1.7B | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.0B | 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 Decline
Operating cash flow was lower than both the preceding quarter and the same quarter last year, which directly reduced free cash flow despite lower capital expenditure.
The decline in operating cash flow was the primary factor behind the year-over-year decrease in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were lower than both the preceding quarter and the year-ago quarter. Capital expenditure decreased sequentially but increased slightly compared to last year, resulting in a free cash flow that was higher than the prior quarter but lower than the year-ago period.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased significantly, leading to a higher free cash flow and an improved margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, with a weakened margin.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago period.