Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
AbbVie's free cash flow margin improved sharply from the prior quarter, driven by a significant increase in operating cash flow while revenue remained stable. Compared to the same quarter last year, both operating cash flow and free cash flow were lower, reflecting items noted in the company's filing.
- Revenue was unchanged from the prior quarter, but operating cash flow rose substantially, leading to a much higher free cash flow and margin. Capital expenditure remained at a similar level.
- Sequentially, cash conversion strengthened markedly. Year over year, free cash flow margin declined, as operating cash flow was lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.4B
Cash generated by operations before capital spending.
CapEx
$249.0M
Capital spending and related asset purchases.
FCF margin
35.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $14.3B | $4.8B | $205.0M | $4.5B | 31.8% |
| 2024-03-31 | $12.3B | $4.0B | $193.0M | $3.8B | 31.3% |
| 2024-06-30 | $14.5B | $2.3B | $241.0M | $2.0B | 14.0% |
| 2024-09-30 | $14.5B | $5.4B | $249.0M | $5.2B | 35.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 333.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow increased substantially from the prior quarter, while revenue held steady, resulting in a significantly higher free cash flow margin.
The stronger cash generation in the current quarter demonstrates an improved conversion of revenue into cash compared to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow rose substantially, leading to a much higher free cash flow and margin. Capital expenditure remained at a similar level.
Sequentially, cash conversion strengthened markedly. Year over year, free cash flow margin declined, as operating cash flow was lower despite higher revenue.
Monitor the timing of working capital and acquisition-related cash expenses, which the company cited as factors affecting operating cash flows.