Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin improved sequentially but declined from the prior year. Operating cash flow rose from the previous quarter yet remained below the year-ago level.
- Operating cash flow as a share of revenue was lower than the year-ago quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in free cash flow margin that improved from the prior quarter but weakened from the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower but free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$459.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$689.0M
Cash generated by operations before capital spending.
CapEx
$230.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 | $7.0B | $4.1B | $271.0M | $3.8B | 54.9% |
| 2023-09-30 | $6.9B | $2.8B | $248.0M | $2.5B | 36.4% |
| 2023-12-31 | $8.2B | $538.0M | $249.0M | $289.0M | 3.5% |
| 2024-03-31 | $7.4B | $689.0M | $230.0M | $459.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -406.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$54.3B | 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 Weakening
Operating cash flow was the strongest observable driver of the free cash flow decline versus the prior year, as it decreased while revenue increased. Capital expenditure also fell, but the drop in operating cash flow more than offset that benefit.
The lower operating cash flow reduced free cash flow and margin compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than the year-ago quarter, while capital expenditure decreased both sequentially and year-over-year, resulting in free cash flow margin that improved from the prior quarter but weakened from the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower but free cash flow and free cash flow margin were higher. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year-over-year despite higher revenue.