Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved sequentially but weakened from the year-ago period.
- Revenue rose while operating cash flow and free cash flow were higher than the prior quarter but lower than the year-ago quarter. Capital expenditure remained relatively stable across periods, leading to a free cash flow margin that strengthened sequentially yet declined year over year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin were all higher than the previous quarter but lower than the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$238.0M
Capital spending and related asset purchases.
FCF margin
26.5%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $8.4B | $2.5B | $238.0M | $2.2B | 26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 297.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$53.3B | 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 Volatility
Operating cash flow was higher than the prior quarter but lower than the year-ago quarter. This swing directly drove the sequential improvement and year-over-year weakening in free cash flow margin.
The variability in operating cash flow is the primary determinant of free cash flow generation in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow and free cash flow were higher than the prior quarter but lower than the year-ago quarter. Capital expenditure remained relatively stable across periods, leading to a free cash flow margin that strengthened sequentially yet declined year over year.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin were all higher than the previous quarter but lower than the same quarter one year earlier.
Monitor the company's planned dividends and stock repurchases as discussed in the filing, as they represent uses of cash that could affect future free cash flow.