Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the preceding quarter and the same quarter last year, while revenue was lower than a year ago. The free cash flow margin strengthened relative to both prior periods.
- Revenue was converted into operating cash flow at a higher rate than the prior quarter, with operating cash flow exceeding the increase in revenue. After capital expenditure, free cash flow rose accordingly, supported by a higher free cash flow margin.
- Compared to the preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$32.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.6B
Cash generated by operations before capital spending.
CapEx
$4.5B
Capital spending and related asset purchases.
FCF margin
14.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $65.2B | $13.7B | $5.3B | $8.4B | 12.8% |
| 2023-12-31 | $64.6B | $14.4B | $5.7B | $8.7B | 13.5% |
| 2024-03-31 | $61.3B | $10.6B | $4.4B | $6.2B | 10.1% |
| 2024-06-30 | $63.5B | $13.6B | $4.5B | $9.1B | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | 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.
Operating Cash Flow Improvement
Operating cash flow increased more than revenue from the prior quarter and was higher than the year-ago level despite lower revenue. This drove the improvement in free cash flow and margin.
The stronger operating cash flow was the primary factor behind the higher free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into operating cash flow at a higher rate than the prior quarter, with operating cash flow exceeding the increase in revenue. After capital expenditure, free cash flow rose accordingly, supported by a higher free cash flow margin.
Compared to the preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure was slightly higher than the prior quarter but lower than a year ago.