Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Chevron's free cash flow margin improved in the current quarter compared to both the prior quarter and the same quarter last year. Revenue was lower, but operating cash flow remained stable relative to the year-ago period and increased from the prior quarter, while capital expenditure decreased from a year ago.
- Operating cash flow was higher than the prior quarter, while capital expenditure remained similar, resulting in a higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow was unchanged, but lower capital expenditure boosted free cash flow and margin.
- Free cash flow and margin were higher than the immediately preceding quarter and also higher than the same quarter one year earlier, despite revenue being lower in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.7B
Cash generated by operations before capital spending.
CapEx
$4.1B
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $48.9B | $12.4B | $4.4B | $8.1B | 16.5% |
| 2024-03-31 | $46.6B | $6.8B | $4.1B | $2.7B | 5.9% |
| 2024-06-30 | $49.6B | $6.3B | $4.0B | $2.3B | 4.7% |
| 2024-09-30 | $48.9B | $9.7B | $4.1B | $5.6B | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | 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.
Improved free cash flow margin
The increase in free cash flow margin was primarily driven by a higher operating cash flow relative to the prior quarter and lower capital expenditure compared to the same quarter last year.
This resulted in free cash flow margin rising to a level above both the prior and year-ago quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter, while capital expenditure remained similar, resulting in a higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow was unchanged, but lower capital expenditure boosted free cash flow and margin.
Free cash flow and margin were higher than the immediately preceding quarter and also higher than the same quarter one year earlier, despite revenue being lower in both comparisons.
Monitor the decline in cash, cash equivalents, and marketable securities from year-end 2023, as noted in the filing.