Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion was exceptionally strong in the current quarter, with free cash flow far exceeding revenue. The free cash flow margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
- Operating cash flow surpassed revenue by a wide margin, and after relatively modest capital expenditure, free cash flow remained very high, resulting in a free cash flow margin that was substantially above both prior periods.
- Compared with the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were substantially higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, similar trends were observed: revenue was slightly higher, and operating cash flow and free cash flow were markedly higher, with the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.1B
Cash generated by operations before capital spending.
CapEx
$259.0M
Capital spending and related asset purchases.
FCF margin
465.8%
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 | $1.4B | $8.2B | $290.0M | $7.9B | 577.6% |
| 2023-03-31 | $1.3B | $3.0B | $235.0M | $2.8B | 215.7% |
| 2023-06-30 | $1.4B | $3.4B | $206.0M | $3.1B | 222.3% |
| 2023-09-30 | $1.5B | $7.1B | $259.0M | $6.9B | 465.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 383.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.6% | 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 metric that showed the largest increase relative to both the prior quarter and the year-ago quarter, rising considerably while revenue remained relatively stable.
Free cash flow and free cash flow margin were both higher as a result of the increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow surpassed revenue by a wide margin, and after relatively modest capital expenditure, free cash flow remained very high, resulting in a free cash flow margin that was substantially above both prior periods.
Compared with the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were substantially higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, similar trends were observed: revenue was slightly higher, and operating cash flow and free cash flow were markedly higher, with the margin also improved.
Capital expenditure increased from the immediately preceding quarter, warranting attention to its trend relative to operating cash flow.