Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter, but operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Compared to the same quarter one year earlier, revenue was significantly lower, though operating cash flow was similar, resulting in an extremely high free cash flow margin for that period.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin improved from the prior quarter, reflecting stronger cash conversion relative to revenue.
- Compared to the prior quarter, revenue was lower while operating cash flow was higher, and capital expenditure was lower, resulting in higher free cash flow and an improved margin. Versus the year-ago quarter, revenue was much lower but operating cash flow was similar, making free cash flow margin comparisons not meaningful due to the prior year's minimal revenue base.
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
$2.0B
Cash generated by operations before capital spending.
CapEx
$358.0M
Capital spending and related asset purchases.
FCF margin
27.1%
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 | $6.1B | $1.3B | $475.0M | $800.0M | 13.2% |
| 2023-06-30 | $6.3B | $1.5B | $377.0M | $1.1B | 18.0% |
| 2023-09-30 | $6.3B | $1.9B | $405.0M | $1.5B | 24.0% |
| 2023-12-31 | $6.0B | $2.0B | $358.0M | $1.6B | 27.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | 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.
Improved free cash flow margin
Operating cash flow increased relative to revenue, while capital expenditure decreased, allowing free cash flow to grow and the margin to rise.
The company converted a larger share of revenue into free cash flow this quarter compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin improved from the prior quarter, reflecting stronger cash conversion relative to revenue.
Compared to the prior quarter, revenue was lower while operating cash flow was higher, and capital expenditure was lower, resulting in higher free cash flow and an improved margin. Versus the year-ago quarter, revenue was much lower but operating cash flow was similar, making free cash flow margin comparisons not meaningful due to the prior year's minimal revenue base.
Capital expenditure declined sequentially and year over year; its future trend may influence free cash flow generation.