Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher sequentially and compared to the same quarter last year. The free cash flow margin improved versus the prior year but weakened compared to the preceding quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. Compared to operating cash flow, capital expenditure consumed a larger share of cash generation than in the prior quarter.
- Revenue was higher than both the prior quarter and the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin were lower than the prior quarter but improved compared to the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$23.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5B
Cash generated by operations before capital spending.
CapEx
$565.0M
Capital spending and related asset purchases.
FCF margin
40.4%
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 | $9.4B | $8.2B | $401.0M | $7.8B | 83.6% |
| 2023-12-31 | $9.6B | $6.8B | $426.0M | $6.3B | 66.3% |
| 2024-03-31 | $9.3B | $5.6B | $396.0M | $5.2B | 55.2% |
| 2024-06-30 | $9.8B | $4.5B | $565.0M | $4.0B | 40.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 131.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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.
Free Cash Flow Margin Decline
The free cash flow margin weakened from the prior quarter despite higher revenue, driven by a relatively larger increase in capital expenditure compared to operating cash flow.
Free cash flow generation was less efficient relative to revenue compared to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. Compared to operating cash flow, capital expenditure consumed a larger share of cash generation than in the prior quarter.
Revenue was higher than both the prior quarter and the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin were lower than the prior quarter but improved compared to the same quarter one year earlier.
Monitor the free cash flow margin for sustained weakening after the sequential decline.