Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and slightly higher than a year ago. Operating cash flow turned positive from negative in the prior quarter, but free cash flow and margin were lower than the same quarter last year.
- Operating cash flow of two billion dollars, after capital expenditure of two hundred seventy-nine million dollars, yielded free cash flow of one point seven billion dollars and a free cash flow margin of four point zero percent. Revenue was forty-two point six billion dollars.
- Compared to the prior quarter, operating cash flow improved from negative three billion dollars to positive two billion dollars, and free cash flow improved from negative three point three billion dollars to positive one point seven billion dollars. Compared to the same quarter a year ago, operating cash flow of six point five billion dollars and free cash flow of six point two billion dollars were both higher than the current quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$279.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $43.7B | $1.9B | $350.0M | $1.6B | 3.7% |
| 2023-09-30 | $42.8B | $2.6B | $319.0M | $2.3B | 5.4% |
| 2023-12-31 | $42.6B | -$3.0B | $326.0M | -$3.3B | -7.7% |
| 2024-03-31 | $42.6B | $2.0B | $279.0M | $1.7B | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.6B | 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 recovery
Operating cash flow turned positive in the current quarter after being negative in the prior quarter, driving the improvement in free cash flow. This shift is the strongest observable change among the supplied metrics.
Free cash flow moved from negative to positive, and the free cash flow margin improved from negative seven point seven percent to positive four point zero percent.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of two billion dollars, after capital expenditure of two hundred seventy-nine million dollars, yielded free cash flow of one point seven billion dollars and a free cash flow margin of four point zero percent. Revenue was forty-two point six billion dollars.
Compared to the prior quarter, operating cash flow improved from negative three billion dollars to positive two billion dollars, and free cash flow improved from negative three point three billion dollars to positive one point seven billion dollars. Compared to the same quarter a year ago, operating cash flow of six point five billion dollars and free cash flow of six point two billion dollars were both higher than the current quarter.
Monitor the trajectory of operating cash flow, which swung from negative to positive sequentially but remained well below the year-ago level.