Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from the same quarter last year. Free cash flow improved both sequentially and year-over-year, supported by higher operating cash flow and stable capital expenditure.
- Operating cash flow as a share of revenue rose to a level above both the prior quarter and the year-ago quarter, reflecting stronger cash generation per dollar of sales. Free cash flow margin followed a similar pattern, increasing from the previous quarter and from the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a significantly improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin also improving.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$104.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.9B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
31.1%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-29 | $85.8B | $28.9B | $2.2B | $26.7B | 31.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$72.7B | 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 Strength
Operating cash flow increased both sequentially and year-over-year, even as revenue declined from the prior quarter. This improvement was the primary factor behind the higher free cash flow and margin.
The stronger operating cash flow directly lifted free cash flow and margin without requiring a change in capital expenditure.
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 rose to a level above both the prior quarter and the year-ago quarter, reflecting stronger cash generation per dollar of sales. Free cash flow margin followed a similar pattern, increasing from the previous quarter and from the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a significantly improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin also improving.
Monitor the trend in manufacturing purchase obligations, which stood at a substantial level and are mostly payable within twelve months.