Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved from the same quarter last year. Operating cash flow was the primary driver of free cash flow, while capital expenditure remained stable.
- Revenue was slightly lower than the prior quarter, yet operating cash flow decreased more sharply, resulting in a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow improved, leading to a higher free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $15.3B | $1.7B | $41.0M | $1.6B | 10.6% |
| 2024-06-30 | $15.7B | $2.4B | $56.0M | $2.3B | 14.7% |
| 2024-09-30 | $16.6B | $3.2B | $63.0M | $3.1B | 18.9% |
| 2024-12-31 | $16.5B | $1.7B | $50.0M | $1.7B | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.8% | 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 Volatility
Operating cash flow decreased from the prior quarter, which directly reduced free cash flow and margin. This was the strongest observable driver of the quarter's cash conversion performance.
The lower operating cash flow weakened free cash flow generation 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 slightly lower than the prior quarter, yet operating cash flow decreased more sharply, resulting in a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow improved, leading to a higher free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
Monitor the trend in operating cash flow, as its sequential decline was the main factor behind the weakened free cash flow margin.