Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and the year-ago period, but operating cash flow weakened sharply, turning free cash flow negative. The decline in operating cash flow was the dominant factor, and its sustainability is a key item to monitor.
- Revenue was stable relative to the prior periods, but operating cash flow was much lower, resulting in a free cash flow that was negative after capital expenditure. The free cash flow margin turned from positive to negative.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter one year earlier, the same metrics were lower, with free cash flow moving from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$4.7B
Capital spending and related asset purchases.
FCF margin
-4.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $62.0B | $1.8B | $4.7B | -$2.9B | -4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | 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 decline
Operating cash flow was materially lower than both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This shift drove free cash flow from positive to negative.
The lower operating cash flow was the primary reason for the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior periods, but operating cash flow was much lower, resulting in a free cash flow that was negative after capital expenditure. The free cash flow margin turned from positive to negative.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened significantly, and the margin turned negative. Versus the same quarter one year earlier, the same metrics were lower, with free cash flow moving from positive to negative.
The level of operating cash flow, which declined substantially from both the prior quarter and the year-ago quarter, is the key item to monitor.