Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter one year earlier, while operating cash flow and free cash flow were higher. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, driving a stronger free cash flow margin despite a lower revenue base. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
- Compared to the preceding quarter, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$405.0M
Capital spending and related asset purchases.
FCF margin
30.5%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $10.7B | $729.0M | $458.0M | $271.0M | 2.5% |
| 2023-07-01 | $10.7B | $1.5B | $284.0M | $1.3B | 11.8% |
| 2023-09-30 | $10.6B | $2.4B | $332.0M | $2.1B | 19.7% |
| 2023-12-31 | $10.9B | $3.7B | $405.0M | $3.3B | 30.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 201.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.6B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin. This was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow directly contributed to a free cash flow margin that improved sequentially and year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, driving a stronger free cash flow margin despite a lower revenue base. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
Compared to the preceding quarter, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it was higher sequentially while operating cash flow also increased.