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, driven by a significant increase in operating cash flow. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow improved markedly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was slightly higher and capital expenditure was slightly lower, yielding a similar free cash flow margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow was stable, with slightly higher operating cash flow offset by slightly lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $15.6B | $2.6B | $1.5B | $1.2B | 7.4% |
| 2023-09-30 | $15.5B | $1.1B | $1.3B | -$193.0M | -1.2% |
| 2023-12-31 | $14.2B | $545.0M | $1.6B | -$1.1B | -7.4% |
| 2024-03-31 | $13.7B | $2.4B | $1.2B | $1.2B | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3283.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.3B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, reversing the negative free cash flow position. This was the strongest observable driver of the quarter's performance.
The improvement in operating cash flow was the primary factor enabling the positive free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved markedly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. Compared to the same quarter last year, operating cash flow was slightly higher and capital expenditure was slightly lower, yielding a similar free cash flow margin.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow was stable, with slightly higher operating cash flow offset by slightly lower revenue.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase in capex could pressure free cash flow.