Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter and was higher than the same quarter last year. However, free cash flow and free cash flow margin were lower than both the prior quarter and the year-ago period.
- Operating cash flow was stable sequentially but lower year-over-year, while capital expenditure was slightly higher sequentially but lower year-over-year. The resulting free cash flow margin weakened compared to both periods.
- Sequentially, revenue and operating cash flow were stable, while free cash flow was slightly lower and margin weakened. Year-over-year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.1B
Cash generated by operations before capital spending.
CapEx
$261.0M
Capital spending and related asset purchases.
FCF margin
463.3%
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 | $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% |
| 2023-12-31 | $1.5B | $7.1B | $261.0M | $6.8B | 463.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 968.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.7% | 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
Operating cash flow was unchanged from the prior quarter but decreased compared to the same quarter last year, leading to a lower free cash flow.
The lower operating cash flow compared to the prior year was the primary factor behind the decline in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable sequentially but lower year-over-year, while capital expenditure was slightly higher sequentially but lower year-over-year. The resulting free cash flow margin weakened compared to both periods.
Sequentially, revenue and operating cash flow were stable, while free cash flow was slightly lower and margin weakened. Year-over-year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
Monitor the free cash flow margin, which declined both sequentially and year-over-year.