Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but declined from the same quarter a year ago. Free cash flow and free cash flow margin decreased compared with both periods, driven by a lower operating cash flow.
- Operating cash flow was lower than in the preceding quarter and the year-ago quarter, while capital expenditure remained relatively stable. The resulting free cash flow margin weakened, indicating a less efficient conversion of revenue into free cash flow.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, revenue and free cash flow were slightly lower, while operating cash flow also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$99.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$21.6B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
21.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $117.2B | $34.0B | $3.8B | $30.2B | 25.8% |
| 2023-04-01 | $94.8B | $28.6B | $2.9B | $25.6B | 27.0% |
| 2023-07-01 | $81.8B | $26.4B | $2.1B | $24.3B | 29.7% |
| 2023-09-30 | $89.5B | $21.6B | $2.2B | $19.4B | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$75.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakened operating cash flow conversion
Operating cash flow declined relative to the prior quarter and the year-ago period, even though revenue improved sequentially. This reduction was the primary observable factor behind the lower free cash flow and margin.
The company generated less free cash flow per dollar of revenue than in the preceding quarter and the same quarter a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than in the preceding quarter and the year-ago quarter, while capital expenditure remained relatively stable. The resulting free cash flow margin weakened, indicating a less efficient conversion of revenue into free cash flow.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, revenue and free cash flow were slightly lower, while operating cash flow also declined.
Monitor the trend of operating cash flow, as it decreased in both comparisons despite revenue growth or stability.