Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held steady versus the prior quarter while rising from the same quarter last year. Free cash flow and margin both improved year-over-year but weakened slightly from the preceding period.
- Operating cash flow increased relative to both the prior quarter and the same quarter last year, driving a higher free cash flow despite a rise in capital expenditure from the preceding period. The free cash flow margin improved from a year ago but edged lower compared to the prior quarter.
- Compared to the prior quarter, revenue was unchanged while free cash flow was lower and the margin narrowed. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.9B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
29.3%
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 |
|---|---|---|---|---|---|
| 2023-04-02 | $20.9B | $3.3B | $863.0M | $2.4B | 11.5% |
| 2023-07-02 | $21.5B | $4.2B | $1.1B | $3.1B | 14.2% |
| 2023-10-01 | $21.4B | $7.5B | $967.0M | $6.5B | 30.5% |
| 2023-12-31 | $21.4B | $7.9B | $1.6B | $6.3B | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 Strength
Operating cash flow rose compared to both the prior quarter and the same quarter last year, providing the main support for free cash flow. The improvement lifted the free cash flow margin well above the year-ago level.
Higher operating cash flow offset the increase in capital expenditure, keeping free cash flow elevated relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to both the prior quarter and the same quarter last year, driving a higher free cash flow despite a rise in capital expenditure from the preceding period. The free cash flow margin improved from a year ago but edged lower compared to the prior quarter.
Compared to the prior quarter, revenue was unchanged while free cash flow was lower and the margin narrowed. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher.
Capital expenditure increased from the prior quarter to a level equal to the same quarter last year, warranting attention for its impact on free cash flow generation.