Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened versus both periods, reflecting higher cash generation relative to revenue.
- Operating cash flow increased while capital expenditure also rose, yet free cash flow grew at a faster pace than revenue, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow improved sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$516.0M
Capital spending and related asset purchases.
FCF margin
23.0%
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 |
|---|---|---|---|---|---|
| 2024-03-29 | $5.8B | $1.7B | $291.0M | $1.4B | 25.0% |
| 2024-06-28 | $5.7B | $1.4B | $287.0M | $1.1B | 19.7% |
| 2024-09-27 | $5.8B | $1.5B | $298.0M | $1.2B | 21.0% |
| 2024-12-31 | $6.5B | $2.0B | $516.0M | $1.5B | 23.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, providing the primary support for the increase in free cash flow. This improvement occurred even as capital expenditure was higher.
The stronger operating cash flow drove free cash flow higher and lifted the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure also rose, yet free cash flow grew at a faster pace than revenue, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow improved sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, and the margin strengthened.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as it directly impacts free cash flow.