Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly versus both the prior quarter and the same quarter one year earlier. Cash conversion strengthened as operating cash flow rose while capital expenditure remained comparatively stable.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, yet operating cash flow increased substantially, leading to a higher free cash flow margin. This indicates improved cash conversion efficiency in the current quarter.
- Compared to the immediately preceding quarter, operating cash flow improved significantly and free cash flow rose markedly, while capital expenditure increased modestly. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$919.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$381.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $23.0B | $2.6B | $439.0M | $2.1B | 9.3% |
| 2024-03-31 | $5.9B | $700.0M | $328.0M | $372.0M | 6.3% |
| 2024-06-30 | $6.2B | $468.0M | $362.0M | $106.0M | 1.7% |
| 2024-09-30 | $6.0B | $1.3B | $381.0M | $919.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5105.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | 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 Strength
Operating cash flow was the strongest observable driver, increasing substantially from both the prior quarter and the year-ago quarter. This supported a higher free cash flow and margin even as revenue declined slightly.
The rise in operating cash flow was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter, yet operating cash flow increased substantially, leading to a higher free cash flow margin. This indicates improved cash conversion efficiency in the current quarter.
Compared to the immediately preceding quarter, operating cash flow improved significantly and free cash flow rose markedly, while capital expenditure increased modestly. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, with capital expenditure lower.
Monitor the absolute level of capital expenditure in future quarters relative to the current quarter's moderate outlay.