Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Operating cash flow was substantially higher than capital expenditure, resulting in free cash flow nearly equal to operating cash flow. The free cash flow margin rose as revenue growth outpaced the increase in capital spending.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$36.3M
Capital spending and related asset purchases.
FCF margin
21.7%
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 | $13.5B | $929.8M | $47.0M | $882.8M | 6.6% |
| 2023-03-31 | $14.3B | $2.4B | $43.2M | $2.4B | 16.8% |
| 2023-06-30 | $15.4B | $2.3B | $90.4M | $2.2B | 14.6% |
| 2023-09-30 | $15.6B | $3.4B | $36.3M | $3.4B | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 301.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Strong Operating Cash Flow
Operating cash flow was the strongest observable driver, increasing substantially from both the prior quarter and the year-ago quarter. This directly supported the rise in free cash flow and margin.
Higher operating cash flow drove the improvement in free cash flow and margin without requiring a proportional increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in free cash flow nearly equal to operating cash flow. The free cash flow margin rose as revenue growth outpaced the increase in capital spending.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor the trend in capital expenditure, which decreased this quarter but could vary in future periods.