Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and versus the prior year, while operating cash flow and free cash flow declined sharply. Free cash flow margin weakened significantly in the current quarter.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure decreased moderately. The resulting free cash flow margin fell compared to both periods, indicating a lower cash conversion rate.
- Compared to the preceding quarter, revenue was slightly higher but operating cash flow was substantially lower, leading to a much lower free cash flow and margin. Relative to the same quarter last year, revenue was broadly similar, yet operating cash flow and free cash flow were markedly lower, with margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$820.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$124.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$447.0M
Cash generated by operations before capital spending.
CapEx
$323.0M
Capital spending and related asset purchases.
FCF margin
0.3%
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 | $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% |
| 2024-06-30 | $43.9B | $447.0M | $323.0M | $124.0M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharp decline in operating cash flow
Operating cash flow fell substantially compared to both the prior quarter and the year-ago quarter. This was the strongest observable driver behind the decline in free cash flow and margin.
Despite stable revenue, lower operating cash flow directly reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure decreased moderately. The resulting free cash flow margin fell compared to both periods, indicating a lower cash conversion rate.
Compared to the preceding quarter, revenue was slightly higher but operating cash flow was substantially lower, leading to a much lower free cash flow and margin. Relative to the same quarter last year, revenue was broadly similar, yet operating cash flow and free cash flow were markedly lower, with margin also weakened.
Monitor the path of operating cash flow relative to revenue, as cash conversion decreased despite stable top-line levels.