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 increased from both the prior quarter and the same quarter one year earlier. The free cash flow margin improved sequentially but remained lower than the year-ago level due to a larger revenue base.
- Operating cash flow as a share of revenue was stable compared to the prior quarter and lower than a year ago, while capital expenditure as a share of revenue remained modest. The resulting free cash flow margin improved from the preceding quarter but weakened relative to the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were higher, yet the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$122.0M
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 |
|---|---|---|---|---|---|
| 2024-02-04 | $12.0B | $4.8B | $122.0M | $4.7B | 39.2% |
| 2024-05-05 | $12.5B | $4.6B | $132.0M | $4.4B | 35.6% |
| 2024-08-04 | $13.1B | $5.0B | $172.0M | $4.8B | 36.7% |
| 2024-11-03 | $14.1B | $5.6B | $122.0M | $5.5B | 39.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 from the prior quarter and from the same quarter last year, supporting higher free cash flow. This was the strongest observable metric in the period.
The rise in operating cash flow was the primary factor behind the sequential improvement in free cash flow.
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 stable compared to the prior quarter and lower than a year ago, while capital expenditure as a share of revenue remained modest. The resulting free cash flow margin improved from the preceding quarter but weakened relative to the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was substantially higher, operating cash flow and free cash flow were higher, yet the free cash flow margin was lower.
Monitor the trend in capital expenditure given the shift between the current quarter and prior periods.