Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter and the same quarter last year, driven by lower operating cash flow. Revenue was slightly higher than the prior quarter but lower than the year-ago period.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a lower free cash flow margin compared to both periods.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$22.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$205.0M
Capital spending and related asset purchases.
FCF margin
31.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $14.3B | $4.8B | $205.0M | $4.5B | 31.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 553.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$46.4B | 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 Decline
Operating cash flow was the primary driver of the lower free cash flow, as it decreased from both the prior quarter and the same quarter last year. Capital expenditure remained relatively stable across all periods.
The lower operating cash flow directly reduced free cash flow and the 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 was lower than the prior quarter and the year-ago quarter, while capital expenditure remained stable. This resulted in a lower free cash flow margin compared to both periods.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all lower.
Monitor the trend in operating cash flow, as it weakened significantly from both the prior quarter and the year-ago period.