Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow and margin improved compared to both the preceding quarter and the same quarter a year earlier. The improvement was driven by stronger operating cash flow.
- Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow and an improved margin. Capital expenditure was also higher but remained a small share of operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were higher. The same pattern held versus the same quarter one year earlier, with all metrics showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
1.9%
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 | $50.5B | $1.4B | $109.0M | $1.3B | 2.5% |
| 2023-06-30 | $53.4B | $863.0M | $217.0M | $646.0M | 1.2% |
| 2023-09-30 | $54.6B | $528.0M | $92.0M | $436.0M | 0.8% |
| 2023-12-31 | $57.4B | $1.2B | $114.0M | $1.1B | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 289.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 strength
Operating cash flow was higher compared to both the preceding quarter and the same quarter a year earlier, providing the main support for the improvement in free cash flow and margin.
This stronger operating cash flow directly lifted free cash flow and the overall cash conversion rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow and an improved margin. Capital expenditure was also higher but remained a small share of operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were higher. The same pattern held versus the same quarter one year earlier, with all metrics showing improvement.
The company's annual payment related to the opioid settlement, as referenced in the filing, is an item to monitor for its effect on future cash flows.