Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased versus both the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin also improved over both periods.
- Revenue rose while operating cash flow increased and capital expenditure decreased, resulting in stronger free cash flow conversion. The free cash flow margin expanded, reflecting improved efficiency in turning revenue into free cash.
- Compared to the previous quarter, revenue was higher and capital expenditure was lower, leading to a larger free cash flow and a higher margin. Versus the year-ago quarter, a similar pattern of revenue growth and capital spending reduction contributed to an even more pronounced improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$840.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
13.1%
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 | $5.9B | $1.2B | $1.2B | $58.0M | 1.0% |
| 2023-12-31 | $5.8B | $1.3B | $1.4B | -$42.0M | -0.7% |
| 2024-03-31 | $6.2B | $1.9B | $1.3B | $642.0M | 10.3% |
| 2024-06-30 | $6.4B | $2.0B | $1.1B | $840.0M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow and Lower Capital Spending
The combination of higher operating cash flow from increased revenue and reduced capital expenditure drove the improvement in free cash flow against both the prior quarter and the same quarter last year.
This dual driver has strengthened the company's free cash flow generation and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased and capital expenditure decreased, resulting in stronger free cash flow conversion. The free cash flow margin expanded, reflecting improved efficiency in turning revenue into free cash.
Compared to the previous quarter, revenue was higher and capital expenditure was lower, leading to a larger free cash flow and a higher margin. Versus the year-ago quarter, a similar pattern of revenue growth and capital spending reduction contributed to an even more pronounced improvement.
Monitor capital expenditure trends, as lower outlays have been a key support for free cash flow growth.