Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the year-ago quarter. The free cash flow margin improved from the prior quarter and was stable relative to the year-ago quarter.
- Operating cash flow rose more than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than both comparison periods, supporting free cash flow.
- Compared to the prior quarter, free cash flow and margin increased. Compared to the year-ago quarter, free cash flow was higher while the margin was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$11.0M
Capital spending and related asset purchases.
FCF margin
58.8%
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 | $3.1B | $982.0M | $13.0M | $969.0M | 31.6% |
| 2023-03-31 | $3.2B | $963.0M | $11.0M | $952.0M | 30.1% |
| 2023-06-30 | $3.2B | $1.2B | $15.0M | $1.1B | 35.9% |
| 2023-09-30 | $3.3B | $2.0B | $11.0M | $2.0B | 58.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 271.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Higher operating cash flow
Operating cash flow increased more than revenue compared to the prior quarter, driving the improvement in free cash flow margin.
This supported a higher free cash flow generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than both comparison periods, supporting free cash flow.
Compared to the prior quarter, free cash flow and margin increased. Compared to the year-ago quarter, free cash flow was higher while the margin was similar.
Monitor the trend in capital expenditure, which remained low relative to operating cash flow.