Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was essentially flat versus the prior quarter and higher year-over-year. Operating cash flow, free cash flow, and free cash flow margin all improved compared to both the prior quarter and the same quarter last year.
- Operating cash flow as a proportion of revenue strengthened, and capital expenditure increased versus both comparisons. The resulting free cash flow was higher than in the prior quarter and the year-ago quarter, while the free cash flow margin improved sequentially but was slightly lower than the year-ago level.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow and free cash flow were higher, with a margin improvement. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow were higher, although the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$26.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.7B
Cash generated by operations before capital spending.
CapEx
$5.3B
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $52.1B | $10.3B | $4.6B | $5.8B | 11.0% |
| 2023-03-31 | $59.7B | $8.7B | $3.7B | $5.0B | 8.3% |
| 2023-06-30 | $65.4B | $12.4B | $4.7B | $7.7B | 11.9% |
| 2023-09-30 | $65.2B | $13.7B | $5.3B | $8.4B | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -65.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 improvement
Operating cash flow was higher sequentially and year-over-year, outpacing the change in revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly lifted free cash flow, even as capital expenditure rose from both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue strengthened, and capital expenditure increased versus both comparisons. The resulting free cash flow was higher than in the prior quarter and the year-ago quarter, while the free cash flow margin improved sequentially but was slightly lower than the year-ago level.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow and free cash flow were higher, with a margin improvement. Versus the same quarter one year earlier, revenue was higher and both operating cash flow and free cash flow were higher, although the margin was slightly lower.
Monitor capital expenditure trends, as the outlay increased from both the prior quarter and the year-ago quarter, affecting the conversion of operating cash flow into free cash flow.