Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly, reflecting a higher conversion of revenue into free cash flow.
- Operating cash flow increased more than proportionally relative to revenue, while capital expenditure remained relatively stable. This resulted in a free cash flow margin that was higher than both the previous quarter and the year-ago period.
- Compared to the preceding quarter, free cash flow and its margin were higher, driven by a stronger operating cash flow. Year-over-year, the improvement was even more pronounced, with all metrics showing higher levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$49.0M
Capital spending and related asset purchases.
FCF margin
65.8%
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 | $4.2B | $2.1B | $50.0M | $2.1B | 50.2% |
| 2024-03-31 | $4.3B | $1.4B | $52.0M | $1.4B | 32.2% |
| 2024-06-30 | $4.4B | $1.7B | $17.0M | $1.7B | 38.8% |
| 2024-09-30 | $4.6B | $3.0B | $49.0M | $3.0B | 65.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 586.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the year-ago period, driving a significant improvement in free cash flow. Capital expenditure remained low in comparison, allowing most of the cash flow to convert to free cash flow.
This driver supports a stronger free cash flow margin and provides more financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased more than proportionally relative to revenue, while capital expenditure remained relatively stable. This resulted in a free cash flow margin that was higher than both the previous quarter and the year-ago period.
Compared to the preceding quarter, free cash flow and its margin were higher, driven by a stronger operating cash flow. Year-over-year, the improvement was even more pronounced, with all metrics showing higher levels.
Monitor the trend in available capital for capital adequacy and parent company cash and liquid securities, as noted in the filing.