Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and year on year. Free cash flow and free cash flow margin improved markedly from both the prior quarter and the same quarter last year.
- Revenue was unchanged, while operating cash flow increased compared to both the prior quarter and the year-ago quarter. Capital expenditure rose slightly from the prior quarter but was similar to the year-ago level, resulting in higher free cash flow and a wider free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin also improved, with operating cash flow being the main factor.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
7.3%
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 | $13.6B | $3.9B | $3.0B | $983.0M | 7.2% |
| 2023-12-31 | $13.7B | $3.9B | $2.9B | $999.0M | 7.3% |
| 2024-03-31 | $13.7B | $3.2B | $2.8B | $421.0M | 3.1% |
| 2024-06-30 | $13.7B | $3.9B | $2.9B | $1.0B | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$96.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow increased from both the prior quarter and the year-ago period, more than offsetting a modest rise in capital expenditure.
This directly lifted free cash flow and free cash flow margin to their highest levels among the three periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged, while operating cash flow increased compared to both the prior quarter and the year-ago quarter. Capital expenditure rose slightly from the prior quarter but was similar to the year-ago level, resulting in higher free cash flow and a wider free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and free cash flow margin also improved, with operating cash flow being the main factor.
Monitor whether the higher operating cash flow level can be sustained in future quarters.