Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow remained stable sequentially and improved year-over-year, though the free cash flow margin narrowed slightly.
- Operating cash flow decreased modestly from the prior quarter but increased compared to the year-ago period. Capital expenditure was lower than both comparison periods, which helped maintain free cash flow at the prior quarter's level and above the year-ago level.
- Compared to the immediately preceding quarter, revenue and operating cash flow were slightly lower, while capital expenditure decreased more notably, resulting in unchanged free cash flow and a marginally lower margin. Versus the same quarter one year earlier, all metrics improved except the free cash flow margin, which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$311.0M
Capital spending and related asset purchases.
FCF margin
33.1%
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 | $8.0B | -$955.0M | $279.0M | -$1.2B | -15.4% |
| 2023-06-30 | $9.0B | $3.4B | $360.0M | $3.1B | 34.4% |
| 2023-09-30 | $9.1B | $3.4B | $371.0M | $3.0B | 33.3% |
| 2023-12-31 | $9.0B | $3.3B | $311.0M | $3.0B | 33.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Capital expenditure moderation
Capital expenditure was lower than both the prior quarter and the year-ago quarter, contributing to stable free cash flow despite a slight decline in operating cash flow.
If capital expenditure remains at lower levels, free cash flow could be supported even if operating cash flow fluctuates.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased modestly from the prior quarter but increased compared to the year-ago period. Capital expenditure was lower than both comparison periods, which helped maintain free cash flow at the prior quarter's level and above the year-ago level.
Compared to the immediately preceding quarter, revenue and operating cash flow were slightly lower, while capital expenditure decreased more notably, resulting in unchanged free cash flow and a marginally lower margin. Versus the same quarter one year earlier, all metrics improved except the free cash flow margin, which was slightly lower.
Monitor revenue trends, as the sequential decline may signal a shift in top-line performance.