Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply in the fourth quarter, supported by increased operating cash flow and reduced capital spending. The company noted its historical ability to generate significant cash from operations, and the free cash flow margin improved compared with both the prior quarter and the same quarter a year earlier.
- Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased significantly, while capital expenditure decreased, leading to a higher free cash flow and margin.
- Sequentially, every cash flow metric strengthened. Compared with the same quarter last year, operating cash flow and free cash flow were higher, though revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
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
$268.0M
Capital spending and related asset purchases.
FCF margin
32.2%
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 | $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% |
| 2023-12-31 | $10.3B | $3.6B | $268.0M | $3.3B | 32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -827.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$39.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash flow improvement
Operating cash flow rose while capital expenditure fell, resulting in substantially higher free cash flow and margin.
The free cash flow margin expanded significantly, reflecting stronger cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased significantly, while capital expenditure decreased, leading to a higher free cash flow and margin.
Sequentially, every cash flow metric strengthened. Compared with the same quarter last year, operating cash flow and free cash flow were higher, though revenue was lower.
Monitor the trajectory of revenue, as it declined year-over-year despite the strong cash generation.