Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly as operating cash flow rose while capital expenditure declined. Revenue was lower than the prior quarter but higher than the same quarter one year earlier, and free cash flow was higher than both comparison periods.
- Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased. The combination of higher operating cash flow and lower capital expenditure drove free cash flow and free cash flow margin higher than in both comparison periods.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$281.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $16.7B | $4.0B | $409.0M | $3.6B | 21.3% |
| 2023-03-31 | $14.3B | $3.8B | $300.0M | $3.5B | 24.4% |
| 2023-06-30 | $15.5B | $2.6B | $364.0M | $2.3B | 14.7% |
| 2023-09-30 | $14.8B | $3.1B | $281.0M | $2.8B | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Operating Cash Flow Growth
Operating cash flow increased compared with both the prior quarter and the same quarter one year earlier, while capital expenditure declined. This resulted in a higher free cash flow margin.
The rise in operating cash flow was the strongest factor behind the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure decreased. The combination of higher operating cash flow and lower capital expenditure drove free cash flow and free cash flow margin higher than in both comparison periods.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and margin were all higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the trajectory of operating cash flow relative to revenue, as it was the primary driver of the free cash flow improvement.