Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter, free cash flow and margin improved compared to the same period last year, driven by higher operating cash flow and reduced capital spending despite lower revenue. The company's liquidity position remained strong as noted in the filing.
- Cash conversion strengthened as operating cash flow increased while capital expenditure decreased, leading to a higher free cash flow margin.
- Revenue was lower than the same quarter last year, but free cash flow and margin were significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$439.2M
Capital spending and related asset purchases.
FCF margin
23.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $8.7B | $2.5B | $517.9M | $2.0B | 23.1% |
| 2023-04-01 | $8.7B | $1.2B | $531.7M | $675.4M | 7.8% |
| 2023-07-01 | $9.5B | $1.9B | $525.4M | $1.4B | 14.6% |
| 2023-09-30 | $8.8B | $2.5B | $439.2M | $2.0B | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 177.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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.
Operating cash flow improvement
Operating cash flow increased notably despite lower revenue, providing a strong boost to free cash flow.
This improvement was the primary factor behind the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow increased while capital expenditure decreased, leading to a higher free cash flow margin.
Revenue was lower than the same quarter last year, but free cash flow and margin were significantly higher.
Monitor capital expenditure levels as they declined from the prior year period.