Understand cash generation quality and how management allocates capital.
Free cash flow was $-23.29B in the latest quarter (61.3% increase YoY). FCF margin is -13.6%. Shares outstanding declined by 7.5% year-over-year, indicating buybacks (returning capital to shareholders). Free cash flow is the lifeblood of a business — it funds dividends, buybacks, debt reduction, and reinvestment without relying on external capital.
Free cash flow, earnings quality, and capital allocation