Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and improved significantly compared to both the prior quarter and the same quarter last year. The cash conversion strengthened as operating cash flow rose while capital expenditure increased moderately.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased versus both periods, driving free cash flow higher. Capital expenditure was higher than both the prior quarter and the year-ago quarter, yet free cash flow margin improved to a positive level from a negative margin a year earlier.
- Compared to the immediately preceding quarter, revenue was slightly lower but free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was substantially higher, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$457.0M
Capital spending and related asset purchases.
FCF margin
20.6%
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 | $11.0B | $2.8B | $364.0M | $2.5B | 22.5% |
| 2023-03-31 | $10.7B | -$631.0M | $299.0M | -$930.0M | -8.7% |
| 2023-06-30 | $10.4B | $2.0B | $292.0M | $1.7B | 16.6% |
| 2023-09-30 | $10.0B | $2.5B | $457.0M | $2.1B | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -493.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$42.4B | 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 Improvement
Operating cash flow rose compared to both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
Higher operating cash flow drove free cash flow higher despite a moderate increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased versus both periods, driving free cash flow higher. Capital expenditure was higher than both the prior quarter and the year-ago quarter, yet free cash flow margin improved to a positive level from a negative margin a year earlier.
Compared to the immediately preceding quarter, revenue was slightly lower but free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was substantially higher, and free cash flow turned from negative to positive.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.