Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year ago. Free cash flow was lower than the previous quarter and also lower than the same quarter last year, driven by a higher capital expenditure and a lower operating cash flow relative to the prior quarter.
- The free cash flow margin weakened from the prior quarter and was slightly lower than the same quarter last year. Operating cash flow as a percentage of revenue decreased versus the preceding quarter but improved compared with the year-ago quarter, while capital expenditure as a share of revenue rose.
- Compared with the immediate prior quarter, revenue was higher but free cash flow was substantially lower. Versus the same quarter one year earlier, revenue was higher while free cash flow was modestly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$739.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
3.0%
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 |
|---|---|---|---|---|---|
| 2024-03-30 | $22.1B | $3.7B | $1.3B | $2.4B | 10.9% |
| 2024-06-29 | $23.2B | $2.6B | $1.4B | $1.2B | 5.3% |
| 2024-09-28 | $22.6B | $5.5B | $1.5B | $4.0B | 17.8% |
| 2024-12-28 | $24.7B | $3.2B | $2.5B | $739.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$39.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared with both the preceding quarter and the same quarter a year earlier. This was the strongest observable factor in the reduction of free cash flow relative to both comparison periods.
Higher capital expenditure absorbed a larger share of operating cash flow, reducing free cash flow despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin weakened from the prior quarter and was slightly lower than the same quarter last year. Operating cash flow as a percentage of revenue decreased versus the preceding quarter but improved compared with the year-ago quarter, while capital expenditure as a share of revenue rose.
Compared with the immediate prior quarter, revenue was higher but free cash flow was substantially lower. Versus the same quarter one year earlier, revenue was higher while free cash flow was modestly lower.
Monitor the trajectory of operating cash flow, which declined from the prior quarter despite higher revenue.