Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, with a margin that improved both sequentially and year-over-year. Revenue declined from the prior quarter but remained above the year-ago level.
- The quarter's revenue, combined with operating cash flow that turned positive, and capital expenditure, yielded a positive free cash flow and a margin that was higher than both the prior quarter's negative margin and the year-ago quarter's margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly from negative to positive. Compared to the same quarter one year earlier, free cash flow and margin were also higher, while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$292.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $9.8B | $124.0M | $316.0M | -$192.0M | -2.0% |
| 2022-12-31 | $11.0B | $2.8B | $364.0M | $2.5B | 22.5% |
| 2023-03-31 | $10.7B | -$631.0M | $299.0M | -$930.0M | -8.7% |
| 2023-06-30 | $10.4B | $2.0B | $292.0M | $1.7B | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -138.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$44.3B | 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 recovery
The quarter's operating cash flow turned positive after a negative prior quarter, driving the free cash flow improvement.
This positive cash generation allowed the company to report a free cash flow margin, in contrast to the prior period's shortfall.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The quarter's revenue, combined with operating cash flow that turned positive, and capital expenditure, yielded a positive free cash flow and a margin that was higher than both the prior quarter's negative margin and the year-ago quarter's margin.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly from negative to positive. Compared to the same quarter one year earlier, free cash flow and margin were also higher, while revenue was slightly higher.
Monitor the sustainability of operating cash flow given the restructuring expenses reported in the filing.