Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow was lower than the prior quarter but slightly below the year-ago level, with the free cash flow margin weakening versus both periods.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow margin declined sequentially and year-over-year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were slightly lower, with a mixed margin change.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$284.0M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $11.2B | $1.9B | $259.0M | $1.6B | 14.5% |
| 2023-09-30 | $11.0B | $4.8B | $342.0M | $4.4B | 40.2% |
| 2023-12-31 | $11.5B | $4.3B | $330.0M | $3.9B | 34.2% |
| 2024-03-31 | $11.9B | $2.8B | $284.0M | $2.5B | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -21.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.0B | 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 Conversion
Revenue increased from both the prior quarter and the year-ago quarter, yet operating cash flow decreased sequentially and was slightly lower year-over-year. This divergence drove the decline in free cash flow margin.
The weaker cash conversion from revenue constrained free cash flow generation despite top-line growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow margin declined sequentially and year-over-year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were slightly lower, with a mixed margin change.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially and year-over-year despite higher revenue.