Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by higher revenue and increased operating cash flow. The free cash flow margin expanded notably as capital expenditure remained relatively stable.
- Revenue rose while operating cash flow grew at a faster pace, supporting a higher free cash flow margin. Capital expenditure increased slightly, but the step up in operating cash flow more than offset the change.
- Compared with the immediately preceding quarter, both operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics showed improvement, with operating cash flow and free cash flow higher and margins stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$556.0M
Capital spending and related asset purchases.
FCF margin
20.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $10.6B | $2.7B | $556.0M | $2.1B | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow rose versus both the prior quarter and the year-ago quarter, while capital expenditure stayed at a similar level. This combination directly lifted free cash flow and its margin.
The company generated a materially higher free cash flow margin compared with both comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace, supporting a higher free cash flow margin. Capital expenditure increased slightly, but the step up in operating cash flow more than offset the change.
Compared with the immediately preceding quarter, both operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics showed improvement, with operating cash flow and free cash flow higher and margins stronger.
Monitor changes in long-term investments, which increased from the prior year-end primarily due to additional investments and equity method earnings, partially offset by impairment of certain securities.