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 year-over-year but declined sequentially. Revenue was stable versus the prior quarter and higher than a year ago.
- Revenue was unchanged sequentially, while operating cash flow decreased, leading to lower free cash flow and margin. Compared to a year ago, both revenue and operating cash flow increased, resulting in higher free cash flow and margin despite higher capital expenditure.
- Compared to the prior quarter, operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$386.0M
Capital spending and related asset purchases.
FCF margin
32.7%
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 | $10.1B | $3.0B | $708.0M | $2.2B | 22.1% |
| 2023-03-31 | $11.0B | $160.0M | $276.0M | -$116.0M | -1.1% |
| 2023-06-30 | $12.0B | $4.5B | $339.0M | $4.1B | 34.5% |
| 2023-09-29 | $12.0B | $4.3B | $386.0M | $3.9B | 32.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.4B | 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 Strength
Operating cash flow was higher compared to the same quarter last year, driving improved free cash flow and margin despite higher capital expenditure.
The higher operating cash flow supported increased capital investment while still delivering higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged sequentially, while operating cash flow decreased, leading to lower free cash flow and margin. Compared to a year ago, both revenue and operating cash flow increased, resulting in higher free cash flow and margin despite higher capital expenditure.
Compared to the prior quarter, operating cash flow, free cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, with capital expenditure also higher.
Monitor capital expenditure trends, as it increased both sequentially and year-over-year, which could affect future free cash flow generation.