Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased versus the prior quarter due to higher capital expenditure and lower operating cash flow, though revenue was stable. Compared with the same quarter a year ago, free cash flow improved as operating cash flow grew while capital expenditure declined.
- Revenue was stable sequentially, but operating cash flow weakened and capital expenditure was higher, resulting in lower free cash flow and a weaker free cash flow margin. Compared with the prior year, revenue and operating cash flow both increased, and capital expenditure was lower, leading to higher free cash flow and an improved margin.
- Sequentially, free cash flow margin weakened from the prior quarter as capital expenditure increased and operating cash flow declined. Year-over-year, the margin improved compared with the same quarter one year earlier, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$210.0M
Capital spending and related asset purchases.
FCF margin
45.7%
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 | $7.3B | $5.3B | $235.0M | $5.0B | 69.0% |
| 2022-09-30 | $7.8B | $5.9B | $295.0M | $5.6B | 71.7% |
| 2022-12-31 | $7.9B | $4.2B | $249.0M | $3.9B | 49.4% |
| 2023-03-31 | $8.0B | $3.9B | $210.0M | $3.6B | 45.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | 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 growth versus prior year
Operating cash flow was higher compared with the same quarter one year ago, while capital expenditure was lower, driving an improvement in free cash flow and margin.
This metric was the strongest observable driver of the year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow weakened and capital expenditure was higher, resulting in lower free cash flow and a weaker free cash flow margin. Compared with the prior year, revenue and operating cash flow both increased, and capital expenditure was lower, leading to higher free cash flow and an improved margin.
Sequentially, free cash flow margin weakened from the prior quarter as capital expenditure increased and operating cash flow declined. Year-over-year, the margin improved compared with the same quarter one year earlier, supported by higher operating cash flow and lower capital expenditure.
Monitor the trajectory of operating cash flow, which declined sequentially while revenue was stable.