Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved, reflecting stronger cash conversion.
- Operating cash flow rose more than capital expenditure, leading to higher free cash flow and an improved free cash flow margin relative to revenue.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the margin expanding. Versus the same quarter a year ago, revenue was slightly higher while operating cash flow and free cash flow showed stronger growth, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$905.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$603.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $4.5B | $1.2B | $289.0M | $932.0M | 20.6% |
| 2023-06-30 | $3.7B | $772.0M | $305.0M | $467.0M | 12.5% |
| 2023-09-30 | $4.2B | $920.0M | $398.0M | $522.0M | 12.5% |
| 2023-12-31 | $5.2B | $1.5B | $603.0M | $905.0M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased significantly from both the prior quarter and the year-ago period, outpacing the rise in capital expenditure and driving free cash flow higher.
The improvement in cash conversion efficiency supported a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than capital expenditure, leading to higher free cash flow and an improved free cash flow margin relative to revenue.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the margin expanding. Versus the same quarter a year ago, revenue was slightly higher while operating cash flow and free cash flow showed stronger growth, and the margin improved.
Monitor the trajectory of capital expenditure, which increased sequentially and year over year, to assess its impact on future free cash flow.