Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased compared to both the prior quarter and the same quarter a year ago. The improvement was driven by higher operating cash flow alongside relatively stable capital expenditure.
- Revenue was relatively unchanged sequentially and year-over-year, while operating cash flow rose. As a result, free cash flow margin improved slightly from the prior quarter and more notably from the year-ago quarter.
- Compared to the prior quarter, revenue was slightly higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year ago, revenue was unchanged, operating cash flow was higher, capital expenditure was unchanged, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$999.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
7.3%
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 | $13.7B | $3.3B | $2.5B | $859.0M | 6.3% |
| 2023-06-30 | $13.7B | $3.3B | $2.8B | $477.0M | 3.5% |
| 2023-09-30 | $13.6B | $3.9B | $3.0B | $983.0M | 7.2% |
| 2023-12-31 | $13.7B | $3.9B | $2.9B | $999.0M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$97.1B | 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 higher both sequentially and year-over-year, while revenue was essentially flat. This was the strongest observable driver of the increase in free cash flow.
The higher operating cash flow directly lifted free cash flow more than the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively unchanged sequentially and year-over-year, while operating cash flow rose. As a result, free cash flow margin improved slightly from the prior quarter and more notably from the year-ago quarter.
Compared to the prior quarter, revenue was slightly higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year ago, revenue was unchanged, operating cash flow was higher, capital expenditure was unchanged, and free cash flow was higher.
Monitor whether operating cash flow can sustain its year-over-year improvement given that revenue has not changed.