Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter a year ago. Free cash flow margin improved versus the prior quarter and showed a larger improvement versus the year-ago quarter.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was higher than both the prior quarter and the same quarter last year, indicating that a larger share of revenue was converted into free cash flow.
- Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Relative to the same quarter one year earlier, all metrics were higher and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$77.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$22.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$30.7B
Cash generated by operations before capital spending.
CapEx
$8.1B
Capital spending and related asset purchases.
FCF margin
29.5%
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 | $76.0B | $23.6B | $7.6B | $16.0B | 21.1% |
| 2023-03-31 | $69.8B | $23.5B | $6.3B | $17.2B | 24.7% |
| 2023-06-30 | $74.6B | $28.7B | $6.9B | $21.8B | 29.2% |
| 2023-09-30 | $76.7B | $30.7B | $8.1B | $22.6B | 29.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.5% | 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.
Higher Operating Cash Flow
Operating cash flow was higher sequentially and versus the prior year, providing the primary support for the increase in free cash flow. Capital expenditure also grew, but operating cash flow growth outpaced the capex increase.
The elevated operating cash flow drove free cash flow to a higher level compared with both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was higher than both the prior quarter and the same quarter last year, indicating that a larger share of revenue was converted into free cash flow.
Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Relative to the same quarter one year earlier, all metrics were higher and free cash flow margin improved.
Capital expenditure increased from both the prior quarter and the year-ago quarter; the magnitude of future spending relative to operating cash flow is worth monitoring.