Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and notably higher than the same quarter a year earlier, while operating cash flow and free cash flow improved significantly. The filing describes the company's business, risk factors, and management's discussion of financial condition, including liquidity and capital resources.
- Revenue increased modestly, while operating cash flow grew substantially, leading to strong free cash flow after accounting for capital expenditure. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was much higher, and free cash flow was higher, resulting in an improved free cash flow margin. Versus the same quarter a year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, with the margin also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$257.0M
Capital spending and related asset purchases.
FCF margin
39.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-30 | $8.5B | $3.6B | $257.0M | $3.3B | 39.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$51.4B | 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 Improvement
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, more than offsetting the slight increase in capital expenditure.
This improvement directly boosted free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased modestly, while operating cash flow grew substantially, leading to strong free cash flow after accounting for capital expenditure. The free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was much higher, and free cash flow was higher, resulting in an improved free cash flow margin. Versus the same quarter a year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher, with the margin also higher.
Monitor the sustainability of the operating cash flow growth relative to revenue.