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 margin improved versus the year-ago quarter but weakened from the immediately preceding quarter.
- Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure was stable across all periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow, reflecting the conversion of revenue into cash.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$262.0M
Capital spending and related asset purchases.
FCF margin
16.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-06-30 | $12.2B | $2.3B | $262.0M | $2.1B | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. This was the strongest observable driver of free cash flow improvement compared to the prior year.
Higher revenue supported a higher absolute free cash flow compared to the year-ago 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 the year-ago quarter but lower than the prior quarter. Capital expenditure was stable across all periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow, reflecting the conversion of revenue into cash.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.