Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and the year-ago quarter, while free cash flow declined sharply due to higher capital expenditure and lower operating cash flow. The free cash flow margin weakened, falling below the prior quarter and the year-ago quarter levels.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure increased, resulting in a significant drop in free cash flow. The free cash flow margin decreased, reflecting a weaker conversion of revenue into free cash flow.
- Compared to the prior quarter, free cash flow and free cash flow margin weakened, driven by higher capital expenditure and lower operating cash flow. Versus the year-ago quarter, free cash flow and free cash flow margin also declined, as operating cash flow decreased and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$398.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.5B
Cash generated by operations before capital spending.
CapEx
$3.1B
Capital spending and related asset purchases.
FCF margin
2.9%
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 | $13.7B | $3.2B | $2.8B | $421.0M | 3.1% |
| 2024-06-30 | $13.7B | $3.9B | $2.9B | $1.0B | 7.3% |
| 2024-09-30 | $13.8B | $3.9B | $2.6B | $1.3B | 9.7% |
| 2024-12-31 | $13.9B | $3.5B | $3.1B | $398.0M | 2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$93.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the decline in free cash flow.
The higher capital expenditure amplified the reduction in free cash flow, with no offset from revenue improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure increased, resulting in a significant drop in free cash flow. The free cash flow margin decreased, reflecting a weaker conversion of revenue into free cash flow.
Compared to the prior quarter, free cash flow and free cash flow margin weakened, driven by higher capital expenditure and lower operating cash flow. Versus the year-ago quarter, free cash flow and free cash flow margin also declined, as operating cash flow decreased and capital expenditure increased.
Monitor capital expenditure trends, as the increase this quarter significantly reduced free cash flow despite stable revenue.