Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow strengthened significantly. Revenue declined sequentially from the prior quarter but was moderately lower than the same quarter a year earlier, while free cash flow margin improved markedly.
- Revenue of twenty-three billion dollars generated operating cash flow of two point six billion dollars. After capital expenditure of four hundred thirty-nine million dollars, free cash flow was two point one billion dollars, yielding a free cash flow margin of nine point three percent.
- Compared to the immediately preceding quarter, revenue increased notably while operating cash flow also rose, contributing to higher free cash flow and an improved free cash flow margin. Versus the same quarter a year earlier, revenue was lower, but operating cash flow and free cash flow both reversed from negative to positive, leading to a substantially stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$439.0M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $24.1B | -$1.6B | $327.0M | -$1.9B | -8.0% |
| 2023-06-30 | $25.2B | $2.5B | $287.0M | $2.2B | 8.8% |
| 2023-09-30 | $6.4B | $992.0M | $441.0M | $551.0M | 8.6% |
| 2023-12-31 | $23.0B | $2.6B | $439.0M | $2.1B | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 377.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.9B | 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 Reversal
Operating cash flow turned strongly positive this quarter compared to a nominal amount a year ago, driving free cash flow from negative to positive and a greatly improved margin.
Free cash flow margin rose from negative to positive, reflecting significantly improved cash generation efficiency relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of twenty-three billion dollars generated operating cash flow of two point six billion dollars. After capital expenditure of four hundred thirty-nine million dollars, free cash flow was two point one billion dollars, yielding a free cash flow margin of nine point three percent.
Compared to the immediately preceding quarter, revenue increased notably while operating cash flow also rose, contributing to higher free cash flow and an improved free cash flow margin. Versus the same quarter a year earlier, revenue was lower, but operating cash flow and free cash flow both reversed from negative to positive, leading to a substantially stronger free cash flow margin.
Monitor capital expenditure stability, as the current quarter's spending was similar to the prior quarter but lower than the year-ago quarter.