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 both the prior quarter and the same quarter a year ago, supported by operating cash flow growth that outpaced higher capital expenditure. Revenue increased sequentially and year-over-year, while free cash flow reached a level above both comparison periods.
- Revenue rose from the prior quarter and from the same quarter last year, while operating cash flow increased at a faster pace, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher in both comparisons, yet the conversion from revenue to free cash flow strengthened.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$63.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$20.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$30.6B
Cash generated by operations before capital spending.
CapEx
$9.9B
Capital spending and related asset purchases.
FCF margin
36.6%
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 | $52.7B | $11.2B | $6.3B | $4.9B | 9.3% |
| 2023-03-31 | $52.9B | $24.4B | $6.6B | $17.8B | 33.7% |
| 2023-06-30 | $56.2B | $28.8B | $8.9B | $19.8B | 35.3% |
| 2023-09-30 | $56.5B | $30.6B | $9.9B | $20.7B | 36.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $34.8B | 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 Strength
Operating cash flow increased from both the prior quarter and the same quarter last year, growing at a rate faster than revenue and capital expenditure. This was the strongest observable driver of the higher free cash flow and improved margin.
The rise in operating cash flow directly supported a higher free cash flow and an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter and from the same quarter last year, while operating cash flow increased at a faster pace, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher in both comparisons, yet the conversion from revenue to free cash flow strengthened.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago period, as a sustained rise may affect future free cash flow conversion.