Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the latest quarter, free cash flow decreased compared to the previous quarter but improved relative to the same quarter a year earlier. The free cash flow margin narrowed sequentially but expanded year over year.
- Revenue was slightly higher than the prior quarter, but operating cash flow was lower, resulting in lower free cash flow. Capital expenditure remained relatively stable, so the change in operating cash flow drove the decline in cash conversion.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased, and the margin weakened. Versus the same quarter one year earlier, all metrics improved except capital expenditure, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
37.4%
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 | $6.7B | $2.2B | $105.0M | $2.1B | 31.6% |
| 2024-06-30 | $7.0B | $1.3B | $130.0M | $1.2B | 17.2% |
| 2024-09-30 | $7.5B | $4.3B | $141.0M | $4.2B | 55.2% |
| 2024-12-31 | $7.6B | $3.0B | $147.0M | $2.8B | 37.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 decreased from the prior quarter even as revenue edged higher, causing free cash flow and margin to fall. The decline is the primary observable shift in cash generation efficiency.
The quarter's cash generation efficiency weakened.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, but operating cash flow was lower, resulting in lower free cash flow. Capital expenditure remained relatively stable, so the change in operating cash flow drove the decline in cash conversion.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both decreased, and the margin weakened. Versus the same quarter one year earlier, all metrics improved except capital expenditure, which was lower.
Monitor the trajectory of operating cash flow, as it significantly influenced free cash flow this quarter.