Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as revenue and operating cash flow both increased, while capital expenditure was absent, resulting in a positive free cash flow margin. The quarter showed enhancements compared to both the prior quarter and the same period a year earlier.
- Revenue rose while operating cash flow grew more strongly, and with no capital expenditure, free cash flow equaled operating cash flow, producing a free cash flow margin that was higher sequentially and year over year.
- Compared with the immediately preceding quarter, revenue and operating cash flow were higher, and the free cash flow margin improved. Against the same quarter one year earlier, revenue was slightly higher and operating cash flow was higher, with a corresponding improvement in the free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
39.7%
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 | $5.1B | $1.3B | n/a | n/a | n/a |
| 2024-03-31 | $5.1B | $1.4B | n/a | n/a | n/a |
| 2024-06-30 | $4.7B | $1.5B | n/a | n/a | n/a |
| 2024-09-30 | $5.5B | $2.2B | $0 | $2.2B | 39.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.7B | 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 Growth
Operating cash flow increased to a level higher than revenue growth, driving free cash flow higher even without capital expenditure. This was the strongest observable driver of the quarter's cash conversion performance.
The improvement in operating cash flow directly lifted free cash flow and the free cash flow margin compared to both prior 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 more strongly, and with no capital expenditure, free cash flow equaled operating cash flow, producing a free cash flow margin that was higher sequentially and year over year.
Compared with the immediately preceding quarter, revenue and operating cash flow were higher, and the free cash flow margin improved. Against the same quarter one year earlier, revenue was slightly higher and operating cash flow was higher, with a corresponding improvement in the free cash flow margin.
Monitor whether capital expenditure remains absent in future periods and how that affects the sustainability of free cash flow generation.