Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened this quarter as free cash flow and margin both improved. The company generated higher free cash flow than in the prior quarter and the same quarter one year earlier.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure decreased from the prior quarter but rose compared to the same quarter last year. As a result, free cash flow and free cash flow margin both improved.
- Compared with the prior quarter, free cash flow and margin were higher despite slightly lower revenue. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, free cash flow, and margin—were stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.1B
Cash generated by operations before capital spending.
CapEx
$817.0M
Capital spending and related asset purchases.
FCF margin
20.0%
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 | $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% |
| 2023-12-31 | $21.4B | $5.1B | $817.0M | $4.3B | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 was higher than both the prior quarter and the same quarter one year earlier, serving as the primary driver behind the improved free cash flow and margin.
Free cash flow margin strengthened, reflecting more efficient cash conversion relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure decreased from the prior quarter but rose compared to the same quarter last year. As a result, free cash flow and free cash flow margin both improved.
Compared with the prior quarter, free cash flow and margin were higher despite slightly lower revenue. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, free cash flow, and margin—were stronger.
Monitor the company's adjusted free cash flow productivity, a non-GAAP measure discussed in the management commentary, as it provides additional insight into cash generation efficiency.