Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fourth quarter, revenue was lower than both the preceding quarter and the year-ago period. Free cash flow improved sequentially but declined compared to the same quarter last year, while the free cash flow margin strengthened against both benchmarks.
- Cash conversion improved as operating cash flow rose sequentially despite lower revenue, though it remained below the year-ago level. Capital expenditure increased, yet free cash flow generation remained robust relative to revenue.
- Sequentially, revenue declined but operating cash flow and free cash flow increased, leading to a higher free cash flow margin. Year-over-year, revenue and free cash flow were lower, but the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$250.0M
Capital spending and related asset purchases.
FCF margin
33.8%
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 | $7.0B | -$259.0M | $298.0M | -$557.0M | -7.9% |
| 2023-06-30 | $9.5B | $485.0M | $92.0M | $393.0M | 4.1% |
| 2023-09-30 | $9.3B | $1.8B | $222.0M | $1.6B | 17.2% |
| 2023-12-31 | $8.5B | $3.1B | $250.0M | $2.9B | 33.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 181.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Improved Free Cash Flow Margin
Free cash flow margin increased as operating cash flow was higher while revenue was lower, compared to the preceding quarter.
This demonstrates more efficient conversion of revenue into free cash flow despite a lower revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved as operating cash flow rose sequentially despite lower revenue, though it remained below the year-ago level. Capital expenditure increased, yet free cash flow generation remained robust relative to revenue.
Sequentially, revenue declined but operating cash flow and free cash flow increased, leading to a higher free cash flow margin. Year-over-year, revenue and free cash flow were lower, but the free cash flow margin improved.
Monitor the trajectory of capital expenditure as it rose compared to both prior periods.