Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter, while free cash flow margin improved slightly. Versus the same quarter last year, revenue was higher but free cash flow and margin were lower.
- Operating cash flow was stable relative to the prior quarter and lower than the year-ago quarter. Capital expenditure decreased from both comparison periods, supporting free cash flow that was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, revenue and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
8.1%
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 | $13.6B | $970.0M | $68.0M | $902.0M | 6.6% |
| 2023-03-31 | $13.8B | $601.0M | $79.0M | $522.0M | 3.8% |
| 2023-06-30 | $14.0B | $1.2B | $62.0M | $1.1B | 7.9% |
| 2023-09-30 | $14.5B | $1.2B | $55.0M | $1.2B | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -23560.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Capital expenditure reduction
Capital expenditure was lower than both the prior quarter and the year-ago quarter, which helped support free cash flow relative to operating cash flow.
Lower capital expenditure contributed to a higher free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable relative to the prior quarter and lower than the year-ago quarter. Capital expenditure decreased from both comparison periods, supporting free cash flow that was higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, revenue and free cash flow were higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in operating cash flow, which declined from the year-ago level despite higher revenue.