Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow remained stable compared to both the prior quarter and the same quarter last year. Free cash flow improved as capital expenditure was lower, leading to a higher free cash flow margin.
- The company converted a stable portion of revenue into operating cash flow, while reduced capital expenditure allowed a higher share of operating cash flow to become free cash flow, resulting in an improved free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow was unchanged, but lower capital expenditure increased free cash flow and margin. Versus the same quarter last year, revenue and operating cash flow were similar, while capital expenditure was lower, boosting free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$844.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$894.0M
Capital spending and related asset purchases.
FCF margin
22.6%
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 | $3.5B | $1.4B | $1.1B | $326.0M | 9.2% |
| 2023-09-30 | $4.0B | $1.7B | $882.0M | $843.0M | 20.9% |
| 2023-12-31 | $3.8B | $1.7B | $910.0M | $827.0M | 21.6% |
| 2024-03-31 | $3.7B | $1.7B | $894.0M | $844.0M | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Reduced Capital Expenditure
Capital expenditure was lower than both the prior quarter and the same quarter last year, while operating cash flow remained stable. This allowed free cash flow to increase and the free cash flow margin to improve.
The lower capital expenditure directly improved free cash flow generation without requiring higher revenue or operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a stable portion of revenue into operating cash flow, while reduced capital expenditure allowed a higher share of operating cash flow to become free cash flow, resulting in an improved free cash flow margin.
Compared to the prior quarter, revenue was slightly lower while operating cash flow was unchanged, but lower capital expenditure increased free cash flow and margin. Versus the same quarter last year, revenue and operating cash flow were similar, while capital expenditure was lower, boosting free cash flow and margin.
Monitor whether capital expenditure remains at this level or reverts toward prior periods, as it is the primary driver of free cash flow variation.