Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive and the margin was above revenue, driven by operating cash flow that exceeded revenue. Compared to the prior quarter, cash generation improved sharply from a negative position, while the year-ago quarter also showed positive but lower cash flow.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent after deducting capital expenditure. This indicates that cash conversion was strong relative to the reported revenue level.
- Compared to the immediately preceding quarter, operating cash flow turned from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
113.0%
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 | $4.9B | -$3.3B | $151.0M | -$3.5B | -70.9% |
| 2023-06-30 | $6.0B | $812.0M | $99.0M | $713.0M | 11.8% |
| 2023-09-30 | $2.6B | -$105.0M | $162.0M | -$267.0M | -10.3% |
| 2023-12-31 | $3.7B | $4.4B | $183.0M | $4.2B | 113.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1656.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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, exceeding revenue and leading to a free cash flow margin above one hundred percent. This was the primary factor behind the positive free cash flow.
It enabled free cash flow to be positive and significantly higher than both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent after deducting capital expenditure. This indicates that cash conversion was strong relative to the reported revenue level.
Compared to the immediately preceding quarter, operating cash flow turned from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, while revenue was slightly lower.
Monitor whether operating cash flow can sustain its level above revenue in future quarters.