Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved compared to the same quarter last year. Operating cash flow and free cash flow both rose from a year ago, though capital expenditure also increased.
- Revenue was slightly lower than last year, but operating cash flow increased, supporting stronger free cash flow and a higher free cash flow margin than a year ago. The conversion from revenue to operating cash flow improved year over year, though it declined from the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter a year ago, operating cash flow and free cash flow increased, free cash flow margin improved, and capital expenditure was higher, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$500.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 | $17.3B | $3.2B | $261.0M | $3.0B | 17.3% |
| 2023-09-30 | $16.8B | $4.1B | $378.0M | $3.7B | 21.9% |
| 2023-12-31 | $17.1B | $4.0B | $536.0M | $3.5B | 20.3% |
| 2024-03-31 | $15.8B | $2.1B | $500.0M | $1.6B | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 growth
Operating cash flow increased compared to the same quarter last year, which directly supported free cash flow and margin improvement. The filing notes that consolidated operating cash flow for the period was higher than the same period a year ago.
This was the strongest observable factor, as free cash flow and margin improved year over year despite slightly lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than last year, but operating cash flow increased, supporting stronger free cash flow and a higher free cash flow margin than a year ago. The conversion from revenue to operating cash flow improved year over year, though it declined from the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter a year ago, operating cash flow and free cash flow increased, free cash flow margin improved, and capital expenditure was higher, while revenue was slightly lower.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from both the prior quarter and the year-ago period.