Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to the same quarter last year but weakened from the prior quarter. Operating cash flow followed a similar pattern, while capital expenditure increased relative to both periods.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow, after deducting capital expenditure, produced free cash flow that was weaker sequentially but stronger year-over-year; the margin reflected this mixed trend.
- Compared to the prior quarter, free cash flow and margin decreased, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow and margin improved, supported by higher operating cash flow despite increased capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
5.4%
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 | $44.0B | $1.2B | $2.1B | -$887.0M | -2.0% |
| 2023-03-31 | $41.5B | $2.8B | $1.8B | $1.0B | 2.5% |
| 2023-06-30 | $45.0B | $5.0B | $1.9B | $3.1B | 6.9% |
| 2023-09-30 | $43.8B | $4.6B | $2.2B | $2.4B | 5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 202.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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 Trend
Operating cash flow improved year-over-year but weakened from the prior quarter, directly affecting free cash flow. The sequential decline, together with higher capital expenditure, reduced free cash flow compared to the prior quarter.
The sequential weakening of operating cash flow was the primary factor behind the decline in free cash flow from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow, after deducting capital expenditure, produced free cash flow that was weaker sequentially but stronger year-over-year; the margin reflected this mixed trend.
Compared to the prior quarter, free cash flow and margin decreased, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, free cash flow and margin improved, supported by higher operating cash flow despite increased capital spending.
Monitor the impact of lower-than-anticipated electric vehicle adoption rates and related supplier charges, as noted in the filing.