Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin decreased compared to both periods, primarily due to a lower operating cash flow relative to revenue and higher capital expenditure.
- Operating cash flow as a percentage of revenue weakened versus both the prior quarter and the year-ago quarter, while capital expenditure increased in absolute terms. This resulted in a lower free cash flow and free cash flow margin for the quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to a significantly lower free cash flow and margin. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$69.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$18.9B
Cash generated by operations before capital spending.
CapEx
$11.0B
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $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% |
| 2023-12-31 | $86.3B | $18.9B | $11.0B | $7.9B | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher in absolute terms compared to both the prior quarter and the year-ago quarter, which contributed to the decline in free cash flow despite higher revenue.
Higher capital expenditure absorbed a larger portion of operating cash flow, reducing free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened versus both the prior quarter and the year-ago quarter, while capital expenditure increased in absolute terms. This resulted in a lower free cash flow and free cash flow margin for the quarter.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to a significantly lower free cash flow and margin. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor the trend in operating cash flow relative to revenue, as it weakened this quarter compared to both prior periods.