Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared with both the prior quarter and the same quarter one year earlier, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened as a result.
- Revenue was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Operating cash flow increased relative to both periods, while capital expenditure decreased, leading to a notable improvement in free cash flow and its margin.
- Compared with the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Compared with the same quarter last year, all metrics improved except capital expenditure, which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.8B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
17.4%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $30.5B | $7.2B | $3.0B | $4.2B | 13.9% |
| 2023-09-30 | $30.1B | $8.2B | $3.3B | $4.9B | 16.1% |
| 2023-12-31 | $31.3B | $5.9B | $3.3B | $2.6B | 8.3% |
| 2024-03-31 | $30.1B | $7.8B | $2.6B | $5.2B | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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.
Cash flow conversion strengthened
Operating cash flow increased while capital expenditure declined, resulting in a higher free cash flow and an improved margin compared with both the prior quarter and the same quarter last year.
This combination was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Operating cash flow increased relative to both periods, while capital expenditure decreased, leading to a notable improvement in free cash flow and its margin.
Compared with the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Compared with the same quarter last year, all metrics improved except capital expenditure, which was slightly lower.
Monitor the trend in capital expenditure, as its reduction relative to operating cash flow was a key factor in the free cash flow improvement this quarter.