Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than both the prior quarter and the same quarter last year, resulting in a lower free cash flow margin. Capital expenditure remained stable across the periods.
- Operating cash flow as a share of revenue declined compared to the prior quarter and the year-ago period, leading to a lower free cash flow margin. The conversion from operating cash flow to free cash flow was supported by relatively consistent capital spending.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower. Versus the same quarter one year earlier, all three metrics also showed lower values, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$101.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$20.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$22.7B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $81.8B | $26.4B | $2.1B | $24.3B | 29.7% |
| 2023-09-30 | $89.5B | $21.6B | $2.2B | $19.4B | 21.7% |
| 2023-12-30 | $119.6B | $39.9B | $2.4B | $37.5B | 31.4% |
| 2024-03-30 | $90.8B | $22.7B | $2.0B | $20.7B | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$69.9B | 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 Conversion
Operating cash flow declined more sharply than revenue on both a sequential and year-over-year basis. This weakened cash conversion was the strongest observable factor behind the lower free cash flow and free cash flow margin.
The lower cash conversion rate directly reduced free cash flow and the free cash flow margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue declined compared to the prior quarter and the year-ago period, leading to a lower free cash flow margin. The conversion from operating cash flow to free cash flow was supported by relatively consistent capital spending.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were lower. Versus the same quarter one year earlier, all three metrics also showed lower values, and the free cash flow margin weakened.
Monitor operating cash flow relative to revenue, as its lower conversion rate was the primary driver of the reduced free cash flow margin.