Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while free cash flow improved sequentially but weakened year over year. The free cash flow margin strengthened versus the prior quarter but weakened compared to the same quarter a year earlier.
- Operating cash flow was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, and free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that improved sequentially but declined year over year.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow and its margin were higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$444.0M
Capital spending and related asset purchases.
FCF margin
19.4%
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 | $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% |
| 2024-09-30 | $16.1B | $3.6B | $444.0M | $3.1B | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 from the prior quarter, supporting a higher free cash flow despite a rise in capital expenditure. This was the strongest observable driver of the sequential improvement in free cash flow.
The higher operating cash flow relative to the prior quarter was the primary factor behind the improved free cash flow margin.
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 prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, and free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that improved sequentially but declined year over year.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow and its margin were higher. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower.
Monitor the trajectory of capital expenditure, which increased from both the prior quarter and the same quarter last year.