Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year. Operating cash flow improved substantially from the prior quarter and remained close to the year-ago level, leading to a much higher free cash flow than the prior quarter.
- Free cash flow margin strengthened significantly from the previous quarter, recovering to a level comparable with the same quarter one year earlier. Operating cash flow as a proportion of revenue was higher than the prior quarter, while capital expenditure as a share of revenue remained stable.
- Compared with the immediately preceding quarter, revenue increased, operating cash flow expanded considerably, and free cash flow rose sharply, while capital expenditure was slightly higher. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was marginally lower, free cash flow was nearly level, and capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$871.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$332.0M
Capital spending and related asset purchases.
FCF margin
5.2%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $45.1B | $2.7B | $332.0M | $2.3B | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 230.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Recovery in Free Cash Flow
Free cash flow improved markedly from the prior quarter, driven entirely by a substantial increase in operating cash flow, as capital expenditure remained relatively stable. The free cash flow margin recovered to a level near that of the same quarter last year.
This shift in cash conversion allowed the company to return to a free cash flow generation level consistent with its historical pattern for the same quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin strengthened significantly from the previous quarter, recovering to a level comparable with the same quarter one year earlier. Operating cash flow as a proportion of revenue was higher than the prior quarter, while capital expenditure as a share of revenue remained stable.
Compared with the immediately preceding quarter, revenue increased, operating cash flow expanded considerably, and free cash flow rose sharply, while capital expenditure was slightly higher. Relative to the same quarter one year earlier, revenue was higher, operating cash flow was marginally lower, free cash flow was nearly level, and capital expenditure was slightly higher.
Monitor operating cash flow stability relative to the prior quarter's low level, as the current quarter’s performance shows a large swing.