Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow improved versus both periods, supported by stable operating cash flow and slightly lower capital expenditure.
- Operating cash flow held steady sequentially and increased year-over-year, while capital expenditure decreased slightly from both prior periods. This combination lifted free cash flow and free cash flow margin, indicating improved cash conversion efficiency.
- Compared to the prior quarter, revenue was lower but free cash flow and free cash flow margin were higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
7.6%
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 | $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% |
| 2024-09-30 | $46.2B | $5.5B | $2.0B | $3.5B | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 391.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Stable Operating Cash Flow with Lower Capex
Operating cash flow remained unchanged from the prior quarter at a level higher than a year ago, while capital expenditure decreased from both comparison periods. This combination directly supported the improvement in free cash flow and margin.
The stable operating cash flow and reduced capital expenditure were the strongest observable drivers of higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow held steady sequentially and increased year-over-year, while capital expenditure decreased slightly from both prior periods. This combination lifted free cash flow and free cash flow margin, indicating improved cash conversion efficiency.
Compared to the prior quarter, revenue was lower but free cash flow and free cash flow margin were higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its current level if revenue continues to decline sequentially.