Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was higher than the prior quarter and stable versus the year-ago quarter. Operating cash flow increased year-over-year but decreased sequentially, while capital expenditure declined both sequentially and year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow was higher and the margin improved, as lower capital expenditure more than offset a decrease in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were substantially higher, driven by both higher operating cash flow and significantly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.9B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $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% |
| 2023-12-31 | $20.5B | $4.9B | $1.6B | $3.3B | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$69.9B | 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 reduction
Capital expenditure was lower than both the prior quarter and the year-ago quarter, contributing to the increase in free cash flow despite a sequential decline in operating cash flow.
The lower capital expenditure directly supported a higher free cash flow and an improved margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and stable versus the year-ago quarter. Operating cash flow increased year-over-year but decreased sequentially, while capital expenditure declined both sequentially and year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow was higher and the margin improved, as lower capital expenditure more than offset a decrease in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were substantially higher, driven by both higher operating cash flow and significantly lower capital expenditure.
Monitor the trend in capital expenditure, as its decline was a key factor in the free cash flow improvement this quarter.