Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened as operating cash flow declined and capital expenditure increased compared to both the prior quarter and the same quarter last year. Revenue was slightly higher sequentially but lower than the year-ago period.
- Revenue was nearly flat sequentially, but operating cash flow decreased, indicating a lower cash conversion rate. Higher capital expenditure further reduced free cash flow, resulting in a weaker margin.
- Compared to the prior quarter, free cash flow, operating cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter a year ago, revenue was lower and all cash flow metrics declined, with capital expenditure rising.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$703.0M
Capital spending and related asset purchases.
FCF margin
16.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $16.2B | $3.4B | $703.0M | $2.7B | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 decreased compared to both the prior quarter and the same quarter one year earlier, while capital expenditure increased. This combination drove free cash flow and margin lower.
Free cash flow and margin weakened, with the decline in operating cash flow being the most significant factor.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly flat sequentially, but operating cash flow decreased, indicating a lower cash conversion rate. Higher capital expenditure further reduced free cash flow, resulting in a weaker margin.
Compared to the prior quarter, free cash flow, operating cash flow, and margin were lower, while capital expenditure was higher. Versus the same quarter a year ago, revenue was lower and all cash flow metrics declined, with capital expenditure rising.
Monitor capital expenditure levels, as they increased significantly in the current quarter and may continue to pressure free cash flow.