Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year earlier and higher than the prior quarter. Operating cash flow increased, leading to improved free cash flow and margin.
- Operating cash flow as a proportion of revenue improved, contributing to a higher free cash flow margin.
- Compared to the prior quarter, all metrics improved. Versus the same quarter last year, revenue was unchanged while operating cash flow increased, but capital expenditure also rose, resulting in free cash flow being similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
22.3%
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 | $6.1B | $1.8B | $772.0M | $1.1B | 17.6% |
| 2023-06-30 | $6.0B | $2.0B | $835.0M | $1.2B | 19.8% |
| 2023-09-30 | $5.9B | $2.1B | $975.0M | $1.2B | 19.4% |
| 2023-12-31 | $6.2B | $2.4B | $1.0B | $1.4B | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.5B | 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
Operating cash flow grew faster than revenue, improving cash conversion.
This supported free cash flow despite higher capital spending.
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 improved, contributing to a higher free cash flow margin.
Compared to the prior quarter, all metrics improved. Versus the same quarter last year, revenue was unchanged while operating cash flow increased, but capital expenditure also rose, resulting in free cash flow being similar.
Monitor the trajectory of capital expenditure given its increase relative to both comparison periods.