Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased sequentially and year over year, leading to higher free cash flow. The free cash flow margin improved from the prior quarter and from the same quarter one year earlier.
- Operating cash flow grew faster than revenue, resulting in a higher free cash flow margin. Capital expenditure increased, but free cash flow still rose as operating cash flow more than offset the increase.
- Compared to the prior quarter, free cash flow rose and the margin improved. Year over year, free cash flow was higher and the margin strengthened, as operating cash flow growth outpaced the increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$48.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$25.3B
Cash generated by operations before capital spending.
CapEx
$17.6B
Capital spending and related asset purchases.
FCF margin
5.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $143.1B | $21.2B | $12.5B | $8.7B | 6.1% |
| 2023-12-31 | $170.0B | $42.5B | $14.6B | $27.9B | 16.4% |
| 2024-03-31 | $143.3B | $19.0B | $14.9B | $4.1B | 2.8% |
| 2024-06-30 | $148.0B | $25.3B | $17.6B | $7.7B | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $8.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow growth
Operating cash flow increased compared to the prior quarter and the same quarter last year, providing the primary support for higher free cash flow. Capital expenditure also rose, but the operating cash flow improvement was sufficient to lift free cash flow and its margin.
This improvement in free cash flow margin reflects stronger cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, resulting in a higher free cash flow margin. Capital expenditure increased, but free cash flow still rose as operating cash flow more than offset the increase.
Compared to the prior quarter, free cash flow rose and the margin improved. Year over year, free cash flow was higher and the margin strengthened, as operating cash flow growth outpaced the increase in capital expenditure.
Monitor the trend in capital expenditure, as it has increased from both the prior quarter and the year-ago period.