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 improved compared to both the prior quarter and the same quarter last year. Free cash flow margin expanded sequentially and year-over-year.
- Operating cash flow increased relative to revenue, supporting higher free cash flow after capital expenditure. The free cash flow margin rose accordingly.
- Compared to the prior quarter, all key metrics were higher. Versus the same quarter last year, free cash flow improved while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $15.6B | $1.8B | $1.2B | $606.0M | 3.9% |
| 2023-06-30 | $15.9B | $2.5B | $1.2B | $1.2B | 7.8% |
| 2023-09-30 | $16.2B | $2.5B | $1.1B | $1.3B | 8.2% |
| 2023-12-31 | $17.3B | $2.7B | $1.2B | $1.5B | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.7B | 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 Growth
Operating cash flow increased both sequentially and year-over-year, providing the primary support for free cash flow expansion. The filing context notes that for the full year, cash from operations rose partly due to positive working capital changes.
Stronger operating cash flow enabled higher free cash flow despite a sequential increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, supporting higher free cash flow after capital expenditure. The free cash flow margin rose accordingly.
Compared to the prior quarter, all key metrics were higher. Versus the same quarter last year, free cash flow improved while capital expenditure was lower.
Capital expenditure trends, as the amount was higher than the prior quarter but lower than the year-ago level.