Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter, driven by higher operating cash flow with stable capital expenditure. Compared to the same quarter last year, free cash flow and margin were slightly higher.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter and was slightly above the year-ago level. With capital expenditure nearly unchanged sequentially and lower year over year, free cash flow rose and the free cash flow margin improved from the prior quarter while remaining close to the year-ago margin.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with revenue also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$201.0M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $11.7B | $1.2B | $304.0M | $892.0M | 7.6% |
| 2024-03-31 | $10.7B | -$278.0M | $159.0M | -$437.0M | -4.1% |
| 2024-06-30 | $12.0B | $814.0M | $201.0M | $613.0M | 5.1% |
| 2024-09-29 | $11.7B | $1.4B | $201.0M | $1.2B | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 Strength
Operating cash flow rose significantly from the prior quarter, while capital expenditure remained unchanged, leading to a higher free cash flow and margin. The year-over-year comparison also shows a modest improvement in operating cash flow.
The increase in operating cash flow was the strongest observable driver of free cash flow improvement in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter and was slightly above the year-ago level. With capital expenditure nearly unchanged sequentially and lower year over year, free cash flow rose and the free cash flow margin improved from the prior quarter while remaining close to the year-ago margin.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with revenue also higher.
Monitor whether operating cash flow can sustain its sequential improvement given revenue was lower in the current quarter.