Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared with both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, supported by higher operating cash flow and lower capital expenditure.
- Operating cash flow as a portion of revenue improved versus both the prior quarter and the year-ago quarter. Free cash flow margin strengthened sequentially and year-over-year, reflecting the combination of higher operating cash flow and a lower capital expenditure relative to revenue.
- Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow all rose. Year-over-year, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow turned positive from a negative figure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$21.2B
Cash generated by operations before capital spending.
CapEx
$12.5B
Capital spending and related asset purchases.
FCF margin
6.1%
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 | $149.2B | $29.2B | $16.6B | $12.6B | 8.4% |
| 2023-03-31 | $127.4B | $4.8B | $14.2B | -$9.4B | -7.4% |
| 2023-06-30 | $134.4B | $16.5B | $11.5B | $5.0B | 3.7% |
| 2023-09-30 | $143.1B | $21.2B | $12.5B | $8.7B | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 Expansion
Operating cash flow increased compared with both the prior quarter and the year-ago quarter. This was the strongest observable driver, as it directly contributed to free cash flow improvement.
Higher operating cash flow, together with lower capital expenditure than a year ago, drove free cash flow positive and improved 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 as a portion of revenue improved versus both the prior quarter and the year-ago quarter. Free cash flow margin strengthened sequentially and year-over-year, reflecting the combination of higher operating cash flow and a lower capital expenditure relative to revenue.
Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow all rose. Year-over-year, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow turned positive from a negative figure.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained lower ratio could support free cash flow.