Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was lower than both the preceding quarter and the same quarter one year earlier, driven primarily by reduced operating cash flow. Revenue was higher compared to both periods, highlighting a weakened cash conversion rate.
- Operating cash flow as a proportion of revenue declined, resulting in a lower free cash flow margin compared to the prior quarter and the year-ago period. Capital expenditure remained relatively stable.
- Compared to the immediately preceding quarter, revenue improved slightly while free cash flow and margin weakened. Relative to the same quarter one year ago, revenue was higher but free cash flow and free cash flow margin were significantly lower, indicating a mixed performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$267.0M
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $9.0B | $994.0M | $204.0M | $790.0M | 8.8% |
| 2024-06-30 | $9.1B | $911.0M | $295.0M | $616.0M | 6.8% |
| 2024-09-30 | $9.8B | $1.5B | $266.0M | $1.2B | 12.6% |
| 2024-12-31 | $9.9B | $1.3B | $267.0M | $1.0B | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Decline in Operating Cash Flow
Operating cash flow decreased compared to both the prior quarter and the year-ago period, while revenue increased. This shift was the most notable factor behind the weakened free cash flow and margin.
Future free cash flow will depend on whether operating cash flow can improve from current levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined, resulting in a lower free cash flow margin compared to the prior quarter and the year-ago period. Capital expenditure remained relatively stable.
Compared to the immediately preceding quarter, revenue improved slightly while free cash flow and margin weakened. Relative to the same quarter one year ago, revenue was higher but free cash flow and free cash flow margin were significantly lower, indicating a mixed performance.
Monitor the trend in operating cash flow relative to revenue, as it directly influences free cash flow generation.