Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly versus both the prior quarter and the same quarter last year. The increase was supported by higher operating cash flow despite a rise in capital expenditure.
- Revenue was moderately higher than the prior quarter and the year-ago quarter. Operating cash flow increased substantially, driving free cash flow higher, while capital expenditure also rose. The free cash flow margin strengthened from the prior quarter and from a year earlier, indicating improved cash conversion relative to revenue.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, the same metrics showed improvement, with operating cash flow and free cash flow notably higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$533.0M
Capital spending and related asset purchases.
FCF margin
13.8%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $10.1B | $1.9B | $560.0M | $1.3B | 13.0% |
| 2023-12-31 | $10.2B | $3.0B | $755.0M | $2.3B | 22.3% |
| 2024-03-31 | $10.0B | $1.0B | $398.0M | $627.0M | 6.3% |
| 2024-06-30 | $10.4B | $2.0B | $533.0M | $1.4B | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow increased from both the prior quarter and the year-ago quarter, more than offsetting the higher capital expenditure. This was the primary observable driver behind the stronger free cash flow and margin.
Higher operating cash flow was the strongest observable factor lifting free cash flow and margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was moderately higher than the prior quarter and the year-ago quarter. Operating cash flow increased substantially, driving free cash flow higher, while capital expenditure also rose. The free cash flow margin strengthened from the prior quarter and from a year earlier, indicating improved cash conversion relative to revenue.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, the same metrics showed improvement, with operating cash flow and free cash flow notably higher.
Monitor the trend in capital expenditure, which rose compared to both the prior quarter and the year-ago quarter.