Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved compared to both the preceding quarter and the year-ago period, leading to a stronger free cash flow margin.
- Operating cash flow rose while capital expenditure increased moderately, resulting in higher free cash flow. The free cash flow margin expanded as free cash flow grew faster than revenue.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with capital expenditure also higher. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.2B
Cash generated by operations before capital spending.
CapEx
$3.3B
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $30.6B | $5.9B | $3.6B | $2.3B | 7.6% |
| 2023-03-31 | $29.7B | $7.2B | $2.7B | $4.6B | 15.4% |
| 2023-06-30 | $30.5B | $7.2B | $3.0B | $4.2B | 13.9% |
| 2023-09-30 | $30.1B | $8.2B | $3.3B | $4.9B | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | 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 the strongest observable driver, rising compared to both the prior quarter and the year-ago quarter, which directly supported the increase in free cash flow.
Higher operating cash flow enabled free cash flow to increase despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure increased moderately, resulting in higher free cash flow. The free cash flow margin expanded as free cash flow grew faster than revenue.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with capital expenditure also higher. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased in both comparisons.