Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus the prior quarter, lifting free cash flow despite a slight revenue decline. Compared to the same quarter last year, both operating cash flow and free cash flow were lower, while capital expenditure was higher.
- Revenue was lower than both the prior quarter and the year-ago quarter, but operating cash flow rose sequentially, resulting in a higher free cash flow margin. The margin strengthened compared to the previous quarter but weakened versus the same quarter last year.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure also increased. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.5B
Cash generated by operations before capital spending.
CapEx
$312.0M
Capital spending and related asset purchases.
FCF margin
424.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $1.4B | $6.5B | $312.0M | $6.1B | 424.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 345.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.6% | 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 Strength
Operating cash flow rose from the prior quarter, providing the primary lift to free cash flow despite a slight dip in revenue. This sequential improvement was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow more than offset the increase in capital expenditure, leading to improved free cash flow sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, but operating cash flow rose sequentially, resulting in a higher free cash flow margin. The margin strengthened compared to the previous quarter but weakened versus the same quarter last year.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure also increased. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year.