Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year, while operating cash flow increased sharply, leading to a much higher free cash flow and an improved margin. The improvement in cash conversion was driven primarily by a strong rise in operating cash flow, though capital expenditure also increased.
- Operating cash flow rose substantially relative to both the preceding quarter and the year-ago period, while capital expenditure was higher. As a result, free cash flow and free cash flow margin both improved markedly.
- Compared with the prior quarter, revenue was slightly lower but operating cash flow was sharply higher, free cash flow was much higher, and the margin improved. Versus the same quarter a year ago, revenue was slightly lower while operating cash flow was higher, free cash flow was higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$342.0M
Capital spending and related asset purchases.
FCF margin
40.2%
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 | $11.4B | $3.3B | $346.0M | $3.0B | 26.0% |
| 2023-03-31 | $11.3B | $3.0B | $278.0M | $2.7B | 23.7% |
| 2023-06-30 | $11.2B | $1.9B | $259.0M | $1.6B | 14.5% |
| 2023-09-30 | $11.0B | $4.8B | $342.0M | $4.4B | 40.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 228.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow was significantly higher than both the prior quarter and the same quarter last year, which was the primary factor behind the improvement in free cash flow and margin.
The strong increase in operating cash flow more than offset the higher capital expenditure, resulting in a much higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially relative to both the preceding quarter and the year-ago period, while capital expenditure was higher. As a result, free cash flow and free cash flow margin both improved markedly.
Compared with the prior quarter, revenue was slightly lower but operating cash flow was sharply higher, free cash flow was much higher, and the margin improved. Versus the same quarter a year ago, revenue was slightly lower while operating cash flow was higher, free cash flow was higher, and the margin improved.
Capital expenditure increased relative to both the prior quarter and the year-ago period, and its trend warrants monitoring.