Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased sharply from the prior quarter, driving a significant improvement in free cash flow and margin. Compared to the same quarter last year, free cash flow and margin also improved, supported by higher operating cash flow.
- Revenue was stable relative to both comparison periods, while operating cash flow rose substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure increased slightly but remained a small portion of operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$22.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.2B
Cash generated by operations before capital spending.
CapEx
$289.0M
Capital spending and related asset purchases.
FCF margin
405.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $1.5B | $7.1B | $259.0M | $6.9B | 465.8% |
| 2023-12-31 | $1.5B | $7.1B | $261.0M | $6.8B | 463.3% |
| 2024-03-31 | $1.4B | $3.0B | $247.0M | $2.8B | 198.8% |
| 2024-06-30 | $1.5B | $6.2B | $289.0M | $6.0B | 405.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 997.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.7% | 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.
Operating Cash Flow Surge
Operating cash flow increased substantially from both the prior quarter and the same quarter last year, outpacing the change in revenue. This was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly boosted free cash flow and margin, making it the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both comparison periods, while operating cash flow rose substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure increased slightly but remained a small portion of operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were also higher, with an improved margin.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.