Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, but free cash flow declined sharply due to lower operating cash flow. Versus the same quarter last year, revenue improved while free cash flow decreased modestly.
- Cash conversion weakened as operating cash flow dropped relative to revenue, resulting in a lower free cash flow margin despite capital expenditure being slightly reduced.
- Compared to the prior quarter, free cash flow and operating cash flow were lower, while revenue was stable. Versus the same quarter one year earlier, revenue was higher and operating cash flow was moderately lower, leading to slightly reduced free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$267.0M
Capital spending and related asset purchases.
FCF margin
38.8%
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 | $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% |
| 2023-12-31 | $8.6B | $3.6B | $267.0M | $3.3B | 38.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weaker Operating Cash Conversion
Operating cash flow was significantly lower than both the preceding quarter and the year-ago quarter, despite revenue being stable compared to last quarter and higher year over year. This drove the reduction in free cash flow and margin.
The diminished cash flow from operations directly constrained free cash flow generation in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow dropped relative to revenue, resulting in a lower free cash flow margin despite capital expenditure being slightly reduced.
Compared to the prior quarter, free cash flow and operating cash flow were lower, while revenue was stable. Versus the same quarter one year earlier, revenue was higher and operating cash flow was moderately lower, leading to slightly reduced free cash flow.
Monitor whether operating cash flow recovers toward historical levels, as this quarter's decline was the main factor behind the weakened free cash flow.