Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter one year earlier. The increase was supported by higher operating cash flow and a lower capital expenditure.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose, and with capital expenditure lower, free cash flow and free cash flow margin strengthened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
10.6%
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 | $14.0B | $1.2B | $62.0M | $1.1B | 7.9% |
| 2023-09-30 | $14.5B | $1.2B | $55.0M | $1.2B | 8.1% |
| 2023-12-31 | $14.8B | $1.2B | $71.0M | $1.2B | 7.8% |
| 2024-03-31 | $15.3B | $1.7B | $41.0M | $1.6B | 10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow growth. This occurred alongside higher revenue.
The stronger operating cash flow drove free cash flow and margin higher, even with a reduction in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose, and with capital expenditure lower, free cash flow and free cash flow margin strengthened.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor whether capital expenditure remains at a lower level in future quarters, as it contributed to the free cash flow improvement.