Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved versus the prior quarter, driven by higher operating cash flow relative to stable revenue. Compared to the same quarter last year, free cash flow and margin were lower as capital expenditure increased and revenue declined.
- Revenue was unchanged from the prior quarter, while operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure increased from the prior quarter, partially offsetting the cash flow gain.
- Compared to the prior quarter, free cash flow and margin were higher, supported by stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as revenue was lower and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$948.0M
Capital spending and related asset purchases.
FCF margin
19.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $7.9B | $2.1B | $936.0M | $1.2B | 14.7% |
| 2023-03-31 | $8.2B | $1.9B | $829.0M | $1.1B | 13.2% |
| 2023-06-30 | $8.2B | $2.1B | $859.0M | $1.3B | 15.7% |
| 2023-09-30 | $8.2B | $2.5B | $948.0M | $1.6B | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.3B | 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 rose from the prior quarter while revenue held steady, indicating a stronger conversion of revenue into cash. This was the primary factor behind the sequential increase in free cash flow and margin.
The higher operating cash flow drove the sequential improvement in free cash flow margin despite a rise in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, while operating cash flow rose, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure increased from the prior quarter, partially offsetting the cash flow gain.
Compared to the prior quarter, free cash flow and margin were higher, supported by stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as revenue was lower and capital expenditure was higher.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year, as it directly reduces free cash flow.