Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow. Capital expenditure increased from the prior quarter but remained below the year-ago level.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow rose sequentially and year-over-year, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly higher with an improved margin. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.1B
Cash generated by operations before capital spending.
CapEx
$3.9B
Capital spending and related asset purchases.
FCF margin
13.1%
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 | $30.1B | $7.8B | $2.6B | $5.2B | 17.4% |
| 2024-06-30 | $29.7B | $4.7B | $2.7B | $2.0B | 6.7% |
| 2024-09-30 | $32.1B | $7.0B | $2.9B | $4.1B | 12.8% |
| 2024-12-31 | $31.9B | $8.1B | $3.9B | $4.2B | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.3% | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
Higher operating cash flow directly drove free cash flow higher and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow rose sequentially and year-over-year, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was slightly lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly higher with an improved margin. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher with an improved margin.
Monitor the trend in capital expenditure, which increased from the prior quarter after being lower than the year-ago level.