Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter and lower than the same quarter a year earlier, while operating cash flow held steady year over year and improved sequentially. The resulting free cash flow margin strengthened from the preceding quarter and was slightly above the year-ago level.
- With revenue flat sequentially but operating cash flow higher, cash conversion improved from the prior quarter. Compared to the year-ago period, revenue declined yet operating cash flow remained the same, indicating a stronger conversion rate.
- Relative to the immediately preceding quarter, free cash flow was higher and the margin expanded. Versus the same quarter one year earlier, free cash flow was unchanged while the margin edged up due to the lower revenue base.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$24.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.6B
Cash generated by operations before capital spending.
CapEx
$219.0M
Capital spending and related asset purchases.
FCF margin
52.8%
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 | $15.1B | $7.4B | $213.0M | $7.2B | 47.7% |
| 2023-03-31 | $12.2B | $4.2B | $175.0M | $4.0B | 32.9% |
| 2023-06-30 | $13.9B | $6.3B | $178.0M | $6.1B | 44.3% |
| 2023-09-30 | $13.9B | $7.6B | $219.0M | $7.4B | 52.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 413.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Resilience
Operating cash flow matched the year-ago level despite lower revenue, and improved sequentially while revenue was flat. The filing context notes that operating cash flows for the nine-month period benefited from the timing of working capital, partially offset by lower net revenues and higher income taxes.
This steadiness in operating cash flow directly supported the free cash flow margin remaining above the prior year’s level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue flat sequentially but operating cash flow higher, cash conversion improved from the prior quarter. Compared to the year-ago period, revenue declined yet operating cash flow remained the same, indicating a stronger conversion rate.
Relative to the immediately preceding quarter, free cash flow was higher and the margin expanded. Versus the same quarter one year earlier, free cash flow was unchanged while the margin edged up due to the lower revenue base.
Capital expenditure rose modestly compared with both the prior quarter and the year-ago period, a trend worth monitoring for its effect on free cash flow.