Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin strengthened compared to both the prior quarter and the same quarter last year. Revenue was higher, and operating cash flow was higher, supporting the improvement.
- Operating cash flow increased from the prior quarter and the year-ago period, while capital expenditure was also higher, resulting in a higher free cash flow and an improved margin.
- Compared to the preceding quarter, all metrics were higher: revenue, operating cash flow, free cash flow, and margin. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$759.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$946.0M
Cash generated by operations before capital spending.
CapEx
$187.0M
Capital spending and related asset purchases.
FCF margin
12.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $5.9B | $1.1B | $228.0M | $913.0M | 15.5% |
| 2023-12-31 | $6.0B | $1.3B | $243.0M | $1.1B | 17.7% |
| 2024-03-31 | $5.9B | $475.0M | $183.0M | $292.0M | 4.9% |
| 2024-06-30 | $6.3B | $946.0M | $187.0M | $759.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.3B | 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
Operating cash flow was higher in the current quarter compared to both the prior quarter and the same quarter last year. The free cash flow margin also improved, reflecting the stronger cash generation.
The higher operating cash flow was associated with a higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter and the year-ago period, while capital expenditure was also higher, resulting in a higher free cash flow and an improved margin.
Compared to the preceding quarter, all metrics were higher: revenue, operating cash flow, free cash flow, and margin. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and margin was higher.
Monitor whether operating cash flow continues to be higher than in previous periods, as it was the main factor behind the free cash flow improvement.