Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower than the prior quarter but improved compared to the same quarter last year. Operating cash flow was higher year over year, while capital expenditure decreased from the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter. Free cash flow and free cash flow margin weakened sequentially but improved year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin were higher, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$587.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$948.0M
Capital spending and related asset purchases.
FCF margin
15.1%
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 | $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% |
| 2024-06-30 | $3.9B | $1.5B | $948.0M | $587.0M | 15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.3% | 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.
Capital Expenditure Increase
Capital expenditure rose from the prior quarter, which was the strongest observable factor in the sequential decline of free cash flow. The year-over-year comparison shows lower capex, supporting the improvement in free cash flow.
Higher capital expenditure reduced free cash flow in the current quarter compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased from the prior quarter but decreased from the year-ago quarter. Free cash flow and free cash flow margin weakened sequentially but improved year over year.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by higher capital expenditure and lower operating cash flow. Compared to the same quarter one year earlier, free cash flow and margin were higher, supported by higher operating cash flow and lower capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as the sequential increase in capex contributed to the decline in free cash flow.