Understand cash generation quality and how management allocates capital.
Free cash flow was $48.59B in the latest quarter (85.5% increase YoY). FCF margin is 19.2%. Shares outstanding declined by 0.6% 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