Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving free cash flow to a substantial positive margin. Revenue was slightly lower than the prior quarter and the year-ago quarter, while capital expenditure decreased.
- Revenue was slightly lower than the prior quarter, but operating cash flow shifted from negative to positive, resulting in a large positive free cash flow and a free cash flow margin that improved from negative to positive.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned positive. Compared to the same quarter one year earlier, the same metrics also improved from negative to positive, while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$20.0B
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
445.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.1B | $9.8B | $159.0M | $9.6B | 188.0% |
| 2023-06-30 | $4.7B | -$5.2B | $239.0M | -$5.5B | -117.2% |
| 2023-09-30 | $4.6B | -$5.0B | $239.0M | -$5.3B | -114.0% |
| 2023-12-31 | $4.5B | $20.0B | $167.0M | $19.9B | 445.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1901.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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 Reversal
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to a large positive figure this quarter. This change was the primary factor behind the improvement in free cash flow and margin.
Free cash flow margin turned from negative to strongly positive, reflecting a significant shift in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow shifted from negative to positive, resulting in a large positive free cash flow and a free cash flow margin that improved from negative to positive.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin turned positive. Compared to the same quarter one year earlier, the same metrics also improved from negative to positive, while revenue was lower.
Monitor whether operating cash flow can sustain its positive level in future quarters.