Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to both the prior quarter and the same quarter a year ago, but operating cash flow declined from the prior quarter, resulting in a lower free cash flow margin. Compared to the year-ago period, both revenue and free cash flow improved, with the margin slightly higher.
- Revenue was higher than the prior quarter, yet operating cash flow was lower, indicating weaker cash conversion. Capital expenditure decreased from the prior quarter, partially offsetting the operating cash flow decline, but free cash flow still fell.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, both free cash flow and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$810.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$885.2M
Cash generated by operations before capital spending.
CapEx
$74.2M
Capital spending and related asset purchases.
FCF margin
1.1%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $63.5B | $629.5M | $102.9M | $526.7M | 0.8% |
| 2023-06-30 | $66.9B | $744.9M | $104.3M | $640.7M | 1.0% |
| 2023-09-30 | $68.9B | $1.8B | $175.5M | $1.7B | 2.4% |
| 2023-12-31 | $72.3B | $885.2M | $74.2M | $810.9M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash conversion efficiency
Operating cash flow did not keep pace with revenue growth compared to the prior quarter, causing the free cash flow margin to decrease. This shift in cash conversion was the most notable change in the quarter.
The lower conversion rate reduced the amount of free cash flow generated from each dollar of revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow was lower, indicating weaker cash conversion. Capital expenditure decreased from the prior quarter, partially offsetting the operating cash flow decline, but free cash flow still fell.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower. Compared to the same quarter one year earlier, both free cash flow and free cash flow margin were higher.
Monitor the free cash flow margin trend, as it declined from the prior quarter despite higher revenue.