Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable, but operating cash flow improved sharply, lifting free cash flow and margin. The sequential improvement was stronger than the year-ago comparison.
- Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow surged, resulting in free cash flow that was far higher than both the prior quarter and the same quarter last year, with a substantially improved margin.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow increased markedly, while capital expenditure was higher year over year. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.2B
Cash generated by operations before capital spending.
CapEx
$401.0M
Capital spending and related asset purchases.
FCF margin
83.6%
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 | $9.1B | $8.4B | $513.0M | $7.9B | 87.3% |
| 2023-03-31 | $8.8B | -$377.0M | $360.0M | -$737.0M | -8.3% |
| 2023-06-30 | $9.4B | $3.9B | $376.0M | $3.5B | 37.6% |
| 2023-09-30 | $9.4B | $8.2B | $401.0M | $7.8B | 83.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 320.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash flow conversion strength
Operating cash flow rose significantly from the prior quarter and the year-ago quarter, while capital expenditure remained relatively moderate. This drove free cash flow to a substantially higher level and expanded the margin.
Free cash flow and margin improved sharply in the quarter due to strong operating cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow surged, resulting in free cash flow that was far higher than both the prior quarter and the same quarter last year, with a substantially improved margin.
Compared with the immediately preceding quarter, operating cash flow and free cash flow increased markedly, while capital expenditure was higher year over year. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin all improved.
Whether operating cash flow can sustain this higher level relative to the stable revenue base is a key item to monitor.