Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a year ago, driven by a significant improvement in operating cash flow despite lower revenue. Cash conversion weakened sequentially as revenue and operating cash flow both declined from the prior quarter.
- Revenue was lower than the preceding quarter, while operating cash flow and free cash flow also declined. The free cash flow margin narrowed sequentially, indicating weaker cash conversion efficiency.
- Compared to the same quarter last year, operating cash flow improved from negative to positive, and free cash flow also turned positive, reflecting a stronger cash position. However, relative to the prior quarter, both revenue and free cash flow were significantly lower, and the free cash flow margin contracted.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$372.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$700.0M
Cash generated by operations before capital spending.
CapEx
$328.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 | $25.2B | $2.5B | $287.0M | $2.2B | 8.8% |
| 2023-09-30 | $6.4B | $992.0M | $441.0M | $551.0M | 8.6% |
| 2023-12-31 | $23.0B | $2.6B | $439.0M | $2.1B | 9.3% |
| 2024-03-31 | $5.9B | $700.0M | $328.0M | $372.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | 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.
Operating Cash Flow Recovery
Operating cash flow improved sharply from a negative position a year ago to a positive figure, which was the primary factor behind the swing in free cash flow.
This recovery provided the liquidity to support capital expenditure and generate positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, while operating cash flow and free cash flow also declined. The free cash flow margin narrowed sequentially, indicating weaker cash conversion efficiency.
Compared to the same quarter last year, operating cash flow improved from negative to positive, and free cash flow also turned positive, reflecting a stronger cash position. However, relative to the prior quarter, both revenue and free cash flow were significantly lower, and the free cash flow margin contracted.
Monitor changes in working capital, as the company noted that working capital changes decreased cash by a smaller amount this quarter versus the prior year.