Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year, while operating cash flow rose more sharply, driving free cash flow and margin higher. Capital expenditure was lower than both comparison periods, further supporting cash conversion.
- Operating cash flow as a share of revenue improved, and with capital expenditure declining, free cash flow margin expanded. The conversion from revenue to free cash flow strengthened relative to both the preceding quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing a larger improvement than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
35.9%
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 | $3.9B | $443.0M | $76.0M | $367.0M | 9.5% |
| 2023-06-30 | $3.2B | $688.0M | $69.0M | $619.0M | 19.5% |
| 2023-09-30 | $3.0B | $1.0B | $58.0M | $985.0M | 33.4% |
| 2023-12-31 | $3.4B | $1.3B | $49.0M | $1.2B | 35.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 243.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Expanded Free Cash Flow Margin
Operating cash flow increased more than revenue, while capital expenditure decreased, resulting in a higher free cash flow margin compared to both the prior quarter and the year-ago quarter. This was the strongest observable driver of the quarter's cash conversion performance.
The improved free cash flow margin indicates a stronger cash generation efficiency per unit of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved, and with capital expenditure declining, free cash flow margin expanded. The conversion from revenue to free cash flow strengthened relative to both the preceding quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing a larger improvement than revenue.
Capital expenditure was lower in the current quarter; monitor whether this trend persists or reverses in future periods.