Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially while operating cash flow and free cash flow increased, leading to a higher free cash flow margin. Compared to the same quarter last year, all metrics improved with revenue higher and cash flow conversion strengthening.
- Revenue held steady from the prior quarter, but operating cash flow rose sharply, resulting in a higher free cash flow despite a lower capital expenditure. The free cash flow margin expanded significantly.
- Sequentially, operating cash flow and free cash flow increased while capital expenditure declined, yielding a stronger margin. Year over year, revenue, operating cash flow, and free cash flow all improved, with capital expenditure lower and margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$77.0M
Capital spending and related asset purchases.
FCF margin
61.9%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.7B | $1.9B | $110.0M | $1.8B | 31.5% |
| 2023-06-30 | $6.3B | $2.7B | $80.0M | $2.6B | 41.8% |
| 2023-09-30 | $6.5B | $3.2B | $104.0M | $3.1B | 47.9% |
| 2023-12-31 | $6.5B | $4.1B | $77.0M | $4.1B | 61.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Generation
Operating cash flow rose substantially from the prior quarter and the year-ago period, while revenue remained stable sequentially and grew year over year. This drove a higher free cash flow margin.
The improvement in cash conversion efficiency provided a stronger cash flow base for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady from the prior quarter, but operating cash flow rose sharply, resulting in a higher free cash flow despite a lower capital expenditure. The free cash flow margin expanded significantly.
Sequentially, operating cash flow and free cash flow increased while capital expenditure declined, yielding a stronger margin. Year over year, revenue, operating cash flow, and free cash flow all improved, with capital expenditure lower and margin higher.
Monitor the trend in capital expenditure, as it declined notably from both the prior quarter and the same quarter last year.