Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and was slightly higher than the year-ago quarter.
- Operating cash flow rose while capital expenditure remained stable relative to the prior quarter, resulting in a positive free cash flow margin. Compared to the year-ago quarter, operating cash flow was higher and capital expenditure was slightly higher, leading to a marginally improved free cash flow margin.
- Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was slightly higher and the free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $43.8B | $4.6B | $2.2B | $2.4B | 5.4% |
| 2023-12-31 | $46.0B | $2.5B | $2.3B | $197.0M | 0.4% |
| 2024-03-31 | $42.8B | $1.4B | $2.1B | -$709.0M | -1.7% |
| 2024-06-30 | $47.8B | $5.5B | $2.1B | $3.4B | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Improvement
Operating cash flow increased substantially from the prior quarter and was higher than the year-ago quarter, driving the positive free cash flow. This was the strongest observable factor in the quarter's cash conversion.
The higher operating cash flow was the primary reason free cash flow turned positive and exceeded the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure remained stable relative to the prior quarter, resulting in a positive free cash flow margin. Compared to the year-ago quarter, operating cash flow was higher and capital expenditure was slightly higher, leading to a marginally improved free cash flow margin.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was slightly higher and the free cash flow margin was stable.
Monitor the trajectory of capital expenditure, as it remained unchanged from the prior quarter and was slightly higher than the year-ago quarter.