Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter as operating cash flow rose and capital expenditure fell, though both metrics remained below the year-ago level. The free cash flow margin strengthened sequentially but was lower than the same quarter last year.
- Revenue was higher than the prior quarter, and operating cash flow increased at a faster pace, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin were higher; compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$843.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$882.0M
Capital spending and related asset purchases.
FCF margin
20.9%
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 | $4.4B | $1.9B | $804.0M | $1.1B | 25.4% |
| 2023-03-31 | $3.8B | $1.7B | $1.0B | $665.0M | 17.7% |
| 2023-06-30 | $3.5B | $1.4B | $1.1B | $326.0M | 9.2% |
| 2023-09-30 | $4.0B | $1.7B | $882.0M | $843.0M | 20.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 growth and lower capex
Operating cash flow increased while capital expenditure decreased relative to the prior quarter, driving a substantial improvement in free cash flow.
This combination lifted free cash flow and margin well above the prior quarter's levels.
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, and operating cash flow increased at a faster pace, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin were higher; compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor the relationship between capital expenditure and operating cash flow, as the ratio shifted lower this quarter after being elevated in the prior quarter.