Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sequentially but fell compared to the same quarter last year. Operating cash flow and free cash flow both improved versus the prior quarter and the year-ago period, lifting the free cash flow margin.
- Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the previous quarter but lower than the year-ago level, supporting the conversion of revenue into free cash flow.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$394.0M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $10.2B | $1.6B | $473.0M | $1.1B | 11.1% |
| 2023-03-31 | $10.2B | $482.0M | $352.0M | $130.0M | 1.3% |
| 2023-06-30 | $10.3B | $1.3B | $301.0M | $989.0M | 9.6% |
| 2023-09-30 | $10.6B | $1.7B | $394.0M | $1.3B | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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.
Stronger Operating Cash Flow
Operating cash flow increased sequentially and year-over-year despite a lower revenue base compared to the prior year, indicating improved cash conversion efficiency.
This drove a higher free cash flow margin and elevated free cash flow compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the previous quarter but lower than the year-ago level, supporting the conversion of revenue into free cash flow.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it directly influences free cash flow generation.