Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially but free cash flow declined due to higher capital expenditure and slightly lower operating cash flow. Compared to the same quarter last year, all metrics improved significantly.
- Operating cash flow as a percentage of revenue weakened sequentially but improved year-over-year, reflecting higher capital expenditure relative to operating cash flow.
- Quarter-over-quarter, revenue was higher but free cash flow margin declined from a strong prior quarter. Year-over-year, both revenue and free cash flow margin improved sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$44.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$19.4B
Cash generated by operations before capital spending.
CapEx
$7.6B
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $28.6B | $14.0B | $6.8B | $7.2B | 25.0% |
| 2023-06-30 | $32.0B | $17.3B | $6.1B | $11.2B | 34.9% |
| 2023-09-30 | $34.1B | $20.4B | $6.5B | $13.9B | 40.7% |
| 2023-12-31 | $40.1B | $19.4B | $7.6B | $11.8B | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $23.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Year-over-Year
Revenue was substantially higher than the same quarter last year, driving improvements in operating cash flow and free cash flow despite higher capital expenditure.
Higher revenue provided the primary support for the year-over-year increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened sequentially but improved year-over-year, reflecting higher capital expenditure relative to operating cash flow.
Quarter-over-quarter, revenue was higher but free cash flow margin declined from a strong prior quarter. Year-over-year, both revenue and free cash flow margin improved sharply.
Capital expenditure increased sequentially, potentially pressuring free cash flow if revenue growth moderates.