Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow was negative and significantly weaker than the prior quarter, with a sharp decline in operating cash flow and a higher capital expenditure. Revenue also decreased compared to both the immediately preceding quarter and the same quarter one year earlier.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow turned deeply negative, while capital expenditure increased, resulting in a more negative free cash flow and a weaker free cash flow margin compared to the preceding periods.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and margin were weaker. Versus the same quarter one year earlier, all metrics deteriorated, with a positive free cash flow turning into a large negative figure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$14.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.5B
Cash generated by operations before capital spending.
CapEx
$648.0M
Capital spending and related asset purchases.
FCF margin
-26.9%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $16.6B | -$3.4B | $567.0M | -$3.9B | -23.7% |
| 2024-06-30 | $16.9B | -$3.9B | $404.0M | -$4.3B | -25.7% |
| 2024-09-30 | $17.8B | -$1.3B | $611.0M | -$2.0B | -11.0% |
| 2024-12-31 | $15.2B | -$3.5B | $648.0M | -$4.1B | -26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$39.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Commercial airplane cash outflows
The filing context indicates that operating cash outflows were primarily driven by the commercial airplanes business, reflecting slowed and/or paused production and lower deliveries due to ongoing safety and quality matters.
Continued pressures in commercial airplane operations could further weigh on cash generation in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow turned deeply negative, while capital expenditure increased, resulting in a more negative free cash flow and a weaker free cash flow margin compared to the preceding periods.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was more negative, capital expenditure was higher, and free cash flow and margin were weaker. Versus the same quarter one year earlier, all metrics deteriorated, with a positive free cash flow turning into a large negative figure.
Monitor commercial airplane production and delivery trends, as the filing context identifies them as a primary driver of the change in operating cash flows.