Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter a year earlier. Operating cash flow grew markedly versus the preceding quarter but was slightly higher than the year-ago period, resulting in a strong free cash flow margin.
- The conversion from revenue to free cash flow was robust, driven by a higher operating cash flow relative to revenue after accounting for capital expenditure. The free cash flow margin strengthened compared to the prior quarter but was marginally lower than the year-ago level.
- Compared with the prior quarter, operating cash flow and free cash flow both improved substantially, while capital expenditure was higher. Versus the same quarter last year, revenue and operating cash flow were higher, and capital expenditure increased, but the free cash flow margin weakened slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.8B
Cash generated by operations before capital spending.
CapEx
$295.0M
Capital spending and related asset purchases.
FCF margin
67.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $8.1B | $5.8B | $295.0M | $5.5B | 67.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 Increase
The strongest observable driver was the rise in operating cash flow compared to the prior quarter, which lifted free cash flow significantly. The filing notes liquidity and capital resources discussions but does not attribute this change to specific operating factors.
Higher operating cash flow directly supported a stronger free cash flow margin versus the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow was robust, driven by a higher operating cash flow relative to revenue after accounting for capital expenditure. The free cash flow margin strengthened compared to the prior quarter but was marginally lower than the year-ago level.
Compared with the prior quarter, operating cash flow and free cash flow both improved substantially, while capital expenditure was higher. Versus the same quarter last year, revenue and operating cash flow were higher, and capital expenditure increased, but the free cash flow margin weakened slightly.
Monitor the capital expenditure trend, as it increased from both comparative periods and may affect future free cash flow conversion.