Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, while revenue decreased slightly and free cash flow margin improved. Compared with the same quarter last year, free cash flow and margin were lower.
- Operating cash flow was sufficient to cover capital expenditure, producing positive free cash flow. The free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
- Compared to the prior quarter, operating cash flow shifted from negative to positive, capital expenditure was lower, and free cash flow turned positive from negative. Versus the same quarter last year, operating cash flow and free cash flow were lower, capital expenditure was lower, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.9B
Cash generated by operations before capital spending.
CapEx
$705.0M
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $88.9B | $5.9B | $591.0M | $5.3B | 6.0% |
| 2023-09-30 | $89.8B | $2.7B | $545.0M | $2.2B | 2.4% |
| 2023-12-31 | $93.8B | -$2.6B | $911.0M | -$3.5B | -3.8% |
| 2024-03-31 | $88.4B | $4.9B | $705.0M | $4.2B | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 373.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 recovery
Operating cash flow increased substantially from the prior quarter, driving the turnaround in free cash flow. This was the strongest observable change across the metrics.
The improvement in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was sufficient to cover capital expenditure, producing positive free cash flow. The free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
Compared to the prior quarter, operating cash flow shifted from negative to positive, capital expenditure was lower, and free cash flow turned positive from negative. Versus the same quarter last year, operating cash flow and free cash flow were lower, capital expenditure was lower, and the free cash flow margin was lower.
Monitor the operating cash flow trend, as it swung sharply between quarters.