Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Current quarter free cash flow margin improved compared to the same quarter last year, while operating cash flow and free cash flow were higher. However, compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow were slightly lower, and the margin weakened.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, with capital expenditure stable. The free cash flow margin improved year-over-year but weakened sequentially.
- Sequentially, revenue and operating cash flow declined, and free cash flow margin decreased. Year-over-year, all metrics showed improvement, with the margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
39.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $3.2B | $1.2B | $15.0M | $1.1B | 35.9% |
| 2023-09-30 | $3.3B | $2.0B | $11.0M | $2.0B | 58.8% |
| 2023-12-31 | $4.0B | $1.7B | $15.0M | $1.6B | 41.5% |
| 2024-03-31 | $3.9B | $1.6B | $15.0M | $1.5B | 39.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating cash flow generation
Operating cash flow improved compared to the same quarter last year but decreased from the immediate prior quarter. This pattern is the primary driver of free cash flow changes.
The sequential decline in operating cash flow led to a lower free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, with capital expenditure stable. The free cash flow margin improved year-over-year but weakened sequentially.
Sequentially, revenue and operating cash flow declined, and free cash flow margin decreased. Year-over-year, all metrics showed improvement, with the margin higher.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially while revenue also decreased.