Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Apple's free cash flow margin declined in the fiscal fourth quarter compared to the previous quarter and improved relative to the same quarter last year. Operating cash flow was lower sequentially but higher year-over-year, while capital expenditure increased in both comparisons.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the preceding quarter but higher than the same quarter one year earlier, while free cash flow followed the same pattern. The free cash flow margin weakened sequentially but improved compared to the prior year.
- Compared to the immediately preceding quarter, revenue increased, operating cash flow and free cash flow decreased, and capital expenditure was higher, resulting in a lower free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and capital expenditure were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$108.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$23.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$26.8B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
25.2%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $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% |
| 2024-09-28 | $94.9B | $26.8B | $2.9B | $23.9B | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$66.7B | 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 Decrease
Despite higher revenue, operating cash flow declined compared to the previous quarter, which was the strongest observable factor behind the lower free cash flow and margin. The company's regulatory filing indicates management considers its cash, equivalents, marketable securities, ongoing operations, and debt market access sufficient for cash requirements and capital return programs.
The sequential decline in operating cash flow was the primary factor in the weakened free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the preceding quarter but higher than the same quarter one year earlier, while free cash flow followed the same pattern. The free cash flow margin weakened sequentially but improved compared to the prior year.
Compared to the immediately preceding quarter, revenue increased, operating cash flow and free cash flow decreased, and capital expenditure was higher, resulting in a lower free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and capital expenditure were all higher, with an improved free cash flow margin.
Monitor capital expenditure levels, as they increased sequentially and year-over-year, representing a higher use of cash.