Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased substantially from the prior quarter and the year-ago quarter, with a higher free cash flow margin. Operating cash flow growth was the key factor, while capital expenditure remained relatively stable.
- Revenue was higher than both comparison periods, and operating cash flow as a share of revenue improved markedly, resulting in a free cash flow margin that was higher than the prior quarter and the year-ago quarter.
- Free cash flow and margin improved compared with both the prior quarter and the year-ago quarter, driven by higher operating cash flow despite similar capital expenditure levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2022-11-20 | $54.4B | $2.6B | $1.1B | $1.6B | 2.9% |
| 2023-02-12 | $55.3B | $3.2B | $890.0M | $2.3B | 4.2% |
| 2023-05-07 | $53.6B | $1.5B | $820.0M | $721.0M | 1.3% |
| 2023-11-26 | $57.8B | $4.7B | $1.0B | $3.6B | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 227.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $10.1B | 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 Improvement
Operating cash flow increased significantly compared to the prior quarter and the year-ago quarter, driving free cash flow higher.
This improvement was the primary factor in the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both comparison periods, and operating cash flow as a share of revenue improved markedly, resulting in a free cash flow margin that was higher than the prior quarter and the year-ago quarter.
Free cash flow and margin improved compared with both the prior quarter and the year-ago quarter, driven by higher operating cash flow despite similar capital expenditure levels.
Monitor the relationship between operating cash flow and revenue, as the current quarter's conversion was higher than in both comparison periods.