Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow rose significantly, driving free cash flow to a higher level. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Operating cash flow as a proportion of revenue increased, reflecting improved cash conversion efficiency relative to both comparison periods.
- Compared to the preceding quarter, all key metrics improved. Year-over-year, revenue and cash flows were higher, with free cash flow margin strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$106.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$37.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$39.9B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
31.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-30 | $119.6B | $39.9B | $2.4B | $37.5B | 31.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$65.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Increase
Revenue was higher compared to both the prior quarter and the same quarter one year earlier, providing a strong base for operating cash flow.
The revenue increase was the primary observable factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased, reflecting improved cash conversion efficiency relative to both comparison periods.
Compared to the preceding quarter, all key metrics improved. Year-over-year, revenue and cash flows were higher, with free cash flow margin strengthening.
Monitor trends in capital expenditure and manufacturing purchase obligations, which are substantial commitments.