Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter a year earlier. Free cash flow margin improved versus a year ago but weakened sequentially.
- Operating cash flow and free cash flow were higher than a year earlier but lower than the preceding quarter. The free cash flow margin was narrower than the prior quarter while wider than the year-ago period.
- Compared with the immediately preceding quarter, revenue improved but operating cash flow and free cash flow weakened. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$67.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$18.9B
Cash generated by operations before capital spending.
CapEx
$9.7B
Capital spending and related asset purchases.
FCF margin
14.7%
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 | $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% |
| 2023-12-31 | $62.0B | $18.9B | $9.7B | $9.1B | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.9B | 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
Revenue was higher than both the prior quarter and the year-ago quarter. This increase was a key factor supporting the improvement in operating cash flow and free cash flow compared with the same period last year.
Higher revenue provided the base for stronger absolute cash generation relative to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were higher than a year earlier but lower than the preceding quarter. The free cash flow margin was narrower than the prior quarter while wider than the year-ago period.
Compared with the immediately preceding quarter, revenue improved but operating cash flow and free cash flow weakened. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher.
The relationship between operating cash flow and capital expenditure warrants attention given the sequential decline in free cash flow.