Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved compared to the same quarter last year but weakened from the prior quarter. Revenue was higher than both comparison periods, while operating cash flow was lower than the preceding quarter but higher than a year ago.
- The free cash flow margin was higher than a year earlier but lower than the prior quarter, reflecting a mixed cash conversion pattern. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow.
- Compared to the preceding quarter, free cash flow and its margin were lower, despite higher revenue. Versus the same quarter last year, free cash flow and margin were higher, supported by a larger increase in operating cash flow relative to capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$330.0M
Capital spending and related asset purchases.
FCF margin
34.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $11.5B | $4.3B | $330.0M | $3.9B | 34.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 222.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year margin expansion
Free cash flow margin increased compared to the same quarter one year earlier, driven by a larger proportional rise in operating cash flow relative to revenue.
This improvement indicates a stronger cash conversion efficiency than the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin was higher than a year earlier but lower than the prior quarter, reflecting a mixed cash conversion pattern. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow.
Compared to the preceding quarter, free cash flow and its margin were lower, despite higher revenue. Versus the same quarter last year, free cash flow and margin were higher, supported by a larger increase in operating cash flow relative to capital expenditure.
Monitor the relationship between revenue growth and operating cash flow generation in upcoming quarters.