Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow declined sequentially but improved year over year, reflecting mixed cash conversion. Capital expenditure rose in both comparisons, narrowing the sequential free cash flow margin.
- Free cash flow margin weakened from the prior quarter as operating cash flow decreased and capital expenditure increased, though both metrics were stronger than the same quarter last year.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, resulting in a lower free cash flow margin. Versus the same quarter one year earlier, all metrics except capital expenditure improved, with higher revenue, operating cash flow, free cash flow, and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.6B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
9.9%
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 | $39.8B | $5.6B | $3.3B | $2.3B | 5.8% |
| 2023-03-31 | $36.6B | $3.1B | $2.4B | $655.0M | 1.8% |
| 2023-06-30 | $41.3B | $7.6B | $2.3B | $5.3B | 12.9% |
| 2023-09-30 | $40.5B | $6.6B | $2.6B | $4.0B | 9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 Volatility
Operating cash flow decreased from the prior quarter but increased compared to the same quarter last year, serving as the primary factor behind free cash flow changes. Capital expenditure also rose in both periods, offsetting some of the year-over-year operating cash flow improvement.
The combined effect of lower operating cash flow and higher capital expenditure in the sequential comparison drove free cash flow lower, while year-over-year gains in operating cash flow more than offset the increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin weakened from the prior quarter as operating cash flow decreased and capital expenditure increased, though both metrics were stronger than the same quarter last year.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher, resulting in a lower free cash flow margin. Versus the same quarter one year earlier, all metrics except capital expenditure improved, with higher revenue, operating cash flow, free cash flow, and margin.
Monitor the trend in capital expenditure, which has increased sequentially and year over year, as further rises could pressure free cash flow.