Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the same quarter last year, while free cash flow margin strengthened. Sequentially, operating cash flow and free cash flow declined, and the margin narrowed.
- Operating cash flow of the current quarter converted into free cash flow after capital expenditure, yielding a free cash flow margin that was higher than the year-ago quarter but lower than the prior quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.9B
Cash generated by operations before capital spending.
CapEx
$925.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $20.8B | $3.6B | $708.0M | $2.9B | 13.8% |
| 2023-03-31 | $20.1B | $3.9B | $730.0M | $3.1B | 15.6% |
| 2023-06-30 | $20.6B | $5.3B | $734.0M | $4.6B | 22.4% |
| 2023-09-30 | $21.9B | $4.9B | $925.0M | $4.0B | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Revenue growth supporting cash generation
Revenue was higher than both the prior quarter and the year-ago quarter, providing a broader base for operating cash flow. Operating cash flow improved year-over-year, contributing to a higher free cash flow margin compared to the same period last year.
The stronger revenue base was the most observable factor supporting the year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter converted into free cash flow after capital expenditure, yielding a free cash flow margin that was higher than the year-ago quarter but lower than the prior quarter.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially and year-over-year.