Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the prior quarter and the same quarter last year, as higher revenue was offset by increased capital expenditure. Operating cash flow remained consistent, while free cash flow margin narrowed slightly.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was unchanged from the prior quarter and lower than the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in free cash flow that was slightly lower than the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue improved while free cash flow was slightly lower, and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher, free cash flow was slightly lower, and free cash flow margin was mixed.
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
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
6.8%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $16.7B | $2.4B | $1.3B | $1.1B | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a stronger base for cash generation.
Higher revenue supported operating cash flow, but the impact on free cash flow was moderated by increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was unchanged from the prior quarter and lower than the year-ago quarter. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, resulting in free cash flow that was slightly lower than the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue improved while free cash flow was slightly lower, and free cash flow margin weakened. Compared to the same quarter last year, revenue was higher, free cash flow was slightly lower, and free cash flow margin was mixed.
Monitor capital expenditure trends, as the increase from the prior quarter contributed to the slight decline in free cash flow.