Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow were higher than both the prior quarter and the same quarter last year. The free cash flow margin improved versus both comparison periods.
- The company converted a larger share of revenue into operating cash flow, and after a slightly higher capital expenditure, free cash flow increased proportionally, resulting in a higher free cash flow margin.
- Compared to the previous quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter a year ago, each metric was higher, and the free cash flow margin also strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.9B
Cash generated by operations before capital spending.
CapEx
$305.0M
Capital spending and related asset purchases.
FCF margin
76.9%
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 | $7.9B | $4.2B | $249.0M | $3.9B | 49.4% |
| 2023-03-31 | $8.0B | $3.9B | $210.0M | $3.6B | 45.7% |
| 2023-06-30 | $8.1B | $5.8B | $295.0M | $5.5B | 67.7% |
| 2023-09-30 | $8.6B | $6.9B | $305.0M | $6.6B | 76.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher operating cash flow
Operating cash flow rose more than revenue in both sequential and year-over-year comparisons, lifting free cash flow despite a small increase in capital expenditure.
The increase in operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow, and after a slightly higher capital expenditure, free cash flow increased proportionally, resulting in a higher free cash flow margin.
Compared to the previous quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving. Versus the same quarter a year ago, each metric was higher, and the free cash flow margin also strengthened.
Monitor the trajectory of capital expenditure, which was slightly higher sequentially and remained stable year-over-year.