Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow decreased significantly, resulting in a lower free cash flow margin. The company's filing indicates that its operating results have generated cash flows that, together with debt agreements and supplier credit terms, have provided sufficient capital resources.
- Operating cash flow was lower than in both the prior quarter and the same quarter last year, while capital expenditure was slightly higher than the prior quarter. As a result, free cash flow and free cash flow margin decreased, indicating weaker cash conversion efficiency.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter last year, revenue was also higher, while all cash flow metrics were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$818.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$182.3M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $72.3B | $885.2M | $74.2M | $810.9M | 1.1% |
| 2024-03-31 | $68.4B | -$878.4M | $112.8M | -$991.2M | -1.4% |
| 2024-06-30 | $74.2B | $2.5B | $117.9M | $2.4B | 3.2% |
| 2024-09-30 | $79.1B | $1.0B | $182.3M | $818.1M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24188.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Decline
Revenue increased, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly above the prior quarter but comparable to the year-ago level.
The weaker cash conversion could affect the company's ability to fund capital expenditures and other obligations if it persists.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than in both the prior quarter and the same quarter last year, while capital expenditure was slightly higher than the prior quarter. As a result, free cash flow and free cash flow margin decreased, indicating weaker cash conversion efficiency.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter last year, revenue was also higher, while all cash flow metrics were lower.
Monitor the trend in operating cash flow relative to revenue, as it declined despite revenue growth.