Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from a year ago but weakened sharply from the prior quarter. Operating cash flow was lower sequentially, while capital expenditure rose, compressing free cash flow margin.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was higher than both periods, resulting in free cash flow that was lower sequentially but higher year-over-year. Free cash flow margin weakened from the prior quarter but improved from a year ago.
- Compared to the prior quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter a year ago, free cash flow and margin were higher, with operating cash flow higher and capital expenditure only slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$530.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
1.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $48.2B | $3.0B | $2.5B | $530.0M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 Decline
Operating cash flow was lower than the prior quarter, which was the strongest observable factor behind the sequential free cash flow decline. Capital expenditure was also higher, compounding the effect.
The combination of lower operating cash flow and higher capital expenditure led to a materially lower free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was higher than both periods, resulting in free cash flow that was lower sequentially but higher year-over-year. Free cash flow margin weakened from the prior quarter but improved from a year ago.
Compared to the prior quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter a year ago, free cash flow and margin were higher, with operating cash flow higher and capital expenditure only slightly higher.
Monitor the relationship between operating cash flow and capital expenditure, as the sequential decline in free cash flow was driven by both a lower operating cash flow and a higher capital expenditure.