Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow and margin improved sharply compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue remained relatively stable across periods.
- Operating cash flow rose while capital expenditure fell, resulting in a free cash flow margin that was higher than in the prior quarter and the same quarter last year. The filing notes that operating cash flows increased and investing cash outflows decreased compared to the prior year.
- Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow increasing and capital expenditure decreasing. Versus the same quarter last year, the same trends were observed, with free cash flow and margin improving substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.3B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
14.9%
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 | $20.3B | $4.3B | $3.4B | $953.0M | 4.7% |
| 2023-03-31 | $19.6B | $4.1B | $3.0B | $1.1B | 5.3% |
| 2023-06-30 | $19.2B | $4.4B | $2.8B | $1.6B | 8.2% |
| 2023-09-30 | $19.3B | $5.3B | $2.4B | $2.9B | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$70.3B | 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 and Capital Expenditure Reduction
Operating cash flow increased compared to both the prior quarter and the same quarter last year, while capital expenditure decreased, leading to a higher free cash flow margin.
This combination was the primary driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure fell, resulting in a free cash flow margin that was higher than in the prior quarter and the same quarter last year. The filing notes that operating cash flows increased and investing cash outflows decreased compared to the prior year.
Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow increasing and capital expenditure decreasing. Versus the same quarter last year, the same trends were observed, with free cash flow and margin improving substantially.
Monitor whether operating cash flow can sustain its increased level relative to revenue.