Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but declined compared to the same quarter last year. The sequential improvement was supported by higher operating cash flow, while capital expenditure also increased.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow improved from the prior quarter but was lower than a year ago, while capital expenditure increased from both periods. Free cash flow and free cash flow margin followed a similar pattern: higher sequentially but lower year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$249.0M
Capital spending and related asset purchases.
FCF margin
16.9%
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 | $9.2B | $2.4B | $241.0M | $2.1B | 23.1% |
| 2023-03-31 | $8.9B | -$784.0M | $193.0M | -$977.0M | -11.0% |
| 2023-06-30 | $9.1B | $1.4B | $233.0M | $1.1B | 12.3% |
| 2023-09-30 | $9.2B | $1.8B | $249.0M | $1.6B | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the prior quarter, which supported a higher free cash flow despite increased capital spending. This improvement contributed to a stronger free cash flow margin compared to the previous quarter.
The sequential increase in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow improved from the prior quarter but was lower than a year ago, while capital expenditure increased from both periods. Free cash flow and free cash flow margin followed a similar pattern: higher sequentially but lower year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower, while capital expenditure was higher.
Capital expenditure increased from both the prior quarter and the same quarter last year, making its trajectory a concrete item to monitor.