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 one year earlier, leading to a higher free cash flow margin. Free cash flow improved significantly from both periods.
- Operating cash flow as a percentage of revenue was higher than in the preceding quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the increase in operating cash flow drove a higher free cash flow margin.
- Compared to the preceding quarter, free cash flow margin improved from a lower level. Versus the same quarter one year earlier, the margin also increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
19.6%
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 |
|---|---|---|---|---|---|
| 2022-09-03 | $22.0B | $4.4B | $1.1B | $3.4B | 15.3% |
| 2023-03-25 | $17.8B | -$392.0M | $581.0M | -$973.0M | -5.5% |
| 2023-06-17 | $22.3B | $2.4B | $932.0M | $1.5B | 6.6% |
| 2023-09-09 | $23.5B | $5.6B | $1.0B | $4.6B | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Growth
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, outpacing the increase in revenue.
This was the primary factor behind the improvement in 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 as a percentage of revenue was higher than in the preceding quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the increase in operating cash flow drove a higher free cash flow margin.
Compared to the preceding quarter, free cash flow margin improved from a lower level. Versus the same quarter one year earlier, the margin also increased.
Monitor the trend in capital expenditure relative to operating cash flow, as it remained stable while operating cash flow varied.