Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially with higher operating cash flow and lower capital expenditure, but decreased compared to the same quarter last year. The free cash flow margin strengthened from the prior quarter yet remained slightly below the year-ago level.
- Operating cash flow as a percentage of revenue was higher than the previous quarter, leading to an improved free cash flow margin. Capital expenditure was lower than the prior quarter, further supporting free cash flow generation.
- Revenue was higher than the previous quarter but lower than the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin all showed a sequential improvement, while each declined compared to the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$341.0M
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $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% |
| 2024-06-30 | $16.7B | $3.0B | $341.0M | $2.7B | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Sequential Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, while revenue also rose, resulting in a higher operating cash flow margin. This improvement was the primary factor behind the sequential increase in free cash flow.
The improved operating cash flow drove a stronger free cash flow margin compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the previous quarter, leading to an improved free cash flow margin. Capital expenditure was lower than the prior quarter, further supporting free cash flow generation.
Revenue was higher than the previous quarter but lower than the same quarter one year earlier. Operating cash flow, free cash flow, and free cash flow margin all showed a sequential improvement, while each declined compared to the year-ago period.
Monitor the trend in capital expenditure, which decreased from the prior quarter but remained above the year-ago level.