Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved sequentially but weakened compared to the year-ago quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the proportion of revenue converted into free cash flow after capital spending.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
58.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $5.5B | $1.7B | $92.0M | $1.6B | 30.1% |
| 2023-09-30 | $7.3B | $1.4B | $71.0M | $1.3B | 17.7% |
| 2023-12-31 | $4.8B | $1.3B | $94.0M | $1.3B | 26.2% |
| 2024-03-31 | $4.4B | $2.7B | $130.0M | $2.6B | 58.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Cash Flow Improvement
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow despite lower revenue. This was the strongest observable driver of the quarter's cash conversion.
The sequential rise in operating cash flow more than offset the decline in revenue, lifting free cash flow and margin.
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. The free cash flow margin reflected the proportion of revenue converted into free cash flow after capital spending.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
Monitor the relationship between operating cash flow and revenue, as the sequential improvement in cash conversion may not persist.