Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly despite lower revenue. Cash conversion efficiency strengthened sharply during the quarter.
- Revenue was lower while operating cash flow increased and capital expenditure declined, resulting in much higher free cash flow and margin.
- Compared to the prior quarter and the year-ago quarter, revenue was lower, but operating cash flow, free cash flow, and margin were all higher, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$66.0M
Capital spending and related asset purchases.
FCF margin
49.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $5.8B | $3.0B | $66.0M | $2.9B | 49.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 228.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 Improvement
Operating cash flow increased while revenue decreased, indicating stronger cash conversion. This was the primary observable factor behind the uplift in free cash flow and margin.
Higher operating cash flow combined with lower capital expenditure drove free cash flow meaningfully higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower while operating cash flow increased and capital expenditure declined, resulting in much higher free cash flow and margin.
Compared to the prior quarter and the year-ago quarter, revenue was lower, but operating cash flow, free cash flow, and margin were all higher, with capital expenditure also lower.
Monitor capital expenditure trends given its notable decline this quarter.