Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially but rose year-over-year. Free cash flow narrowed from the prior quarter while significantly improving from the same period a year ago.
- Operating cash flow decreased relative to revenue, resulting in a lower free cash flow margin compared to the preceding quarter. However, both operating cash flow and free cash flow margin were higher than the year-ago quarter.
- Compared to the immediately preceding quarter, all cash flow metrics weakened, with free cash flow declining more sharply than revenue. Compared to the same quarter one year earlier, all metrics improved markedly, particularly free cash flow which rose from a minimal level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$197.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $6.2B | $1.9B | $1.3B | $642.0M | 10.3% |
| 2024-06-30 | $6.4B | $2.0B | $1.1B | $840.0M | 13.1% |
| 2024-09-30 | $6.7B | $1.9B | $1.2B | $673.0M | 10.1% |
| 2024-12-31 | $5.9B | $1.4B | $1.2B | $197.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 Conversion
Operating cash flow decreased more sharply than revenue on a sequential basis, while capital expenditure held steady. This drove a notable reduction in free cash flow and margin.
The lower cash conversion rate was the key observable factor behind the sequential weakening in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to revenue, resulting in a lower free cash flow margin compared to the preceding quarter. However, both operating cash flow and free cash flow margin were higher than the year-ago quarter.
Compared to the immediately preceding quarter, all cash flow metrics weakened, with free cash flow declining more sharply than revenue. Compared to the same quarter one year earlier, all metrics improved markedly, particularly free cash flow which rose from a minimal level.
Monitor operating cash flow trends relative to revenue to assess whether the sequential decline in cash conversion efficiency persists.