Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was roughly stable compared with the prior quarter and higher than the same quarter last year. Free cash flow turned positive from negative in the prior quarter and was higher than a year ago, reflecting improved cash conversion.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher. As a result, free cash flow and free cash flow margin improved significantly, turning positive from negative sequentially and rising above the year-ago level.
- Compared with the prior quarter, operating cash flow was sharply higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive. Compared with the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2023-05-07 | $53.6B | $1.5B | $820.0M | $721.0M | 1.3% |
| 2023-11-26 | $57.8B | $4.7B | $1.0B | $3.6B | 6.2% |
| 2024-02-18 | $58.4B | $731.0M | $1.0B | -$300.0M | -0.5% |
| 2024-05-12 | $58.5B | $3.0B | $1.1B | $1.9B | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.5B | 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 improvement
Operating cash flow was higher than the prior quarter, while capital expenditure increased only slightly. This shift drove free cash flow from negative to positive and improved the free cash flow margin.
The stronger operating cash flow was the primary factor behind the quarter's positive free cash flow and improved cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher. As a result, free cash flow and free cash flow margin improved significantly, turning positive from negative sequentially and rising above the year-ago level.
Compared with the prior quarter, operating cash flow was sharply higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive. Compared with the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin were higher.
Monitor the company's cash and cash equivalents and short-term investment balance, as noted in the liquidity discussion as a primary source of liquidity.