Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened as free cash flow margin improved from both the prior quarter and the same quarter last year. Revenue edged lower sequentially but was higher year over year, while operating cash flow rose sharply in both comparisons.
- Revenue was slightly lower than the preceding quarter but higher than a year earlier. Operating cash flow increased significantly from both periods, more than offsetting a higher capital expenditure, resulting in free cash flow that was higher than both prior periods. The free cash flow margin improved accordingly.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Versus the same quarter one year earlier, every metric—revenue, operating cash flow, capital expenditure, free cash flow, and margin—was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$378.0M
Capital spending and related asset purchases.
FCF margin
21.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $16.6B | $2.7B | $428.0M | $2.3B | 13.9% |
| 2023-03-31 | $15.9B | $1.6B | $422.0M | $1.2B | 7.3% |
| 2023-06-30 | $17.3B | $3.2B | $261.0M | $3.0B | 17.3% |
| 2023-09-30 | $16.8B | $4.1B | $378.0M | $3.7B | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 markedly higher than both the prior quarter and the same quarter last year, providing the primary uplift to free cash flow despite a modest increase in capital expenditure.
The improvement in operating cash flow drove higher free cash flow and an expanded free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the preceding quarter but higher than a year earlier. Operating cash flow increased significantly from both periods, more than offsetting a higher capital expenditure, resulting in free cash flow that was higher than both prior periods. The free cash flow margin improved accordingly.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Versus the same quarter one year earlier, every metric—revenue, operating cash flow, capital expenditure, free cash flow, and margin—was higher.
The filing notes that cash decreased from year-end 2022, which may warrant monitoring of liquidity trends.