Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened as a result.
- Revenue was stable while operating cash flow increased and capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin.
- Compared with the prior quarter, revenue was slightly higher, operating cash flow improved, capital expenditure was lower, and free cash flow and its margin strengthened. Versus the same quarter a year ago, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow and its margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.9B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $39.3B | $3.7B | $3.7B | -$49.0M | -0.1% |
| 2024-03-31 | $39.2B | $3.2B | $2.8B | $369.0M | 0.9% |
| 2024-06-30 | $44.1B | $6.0B | $2.6B | $3.4B | 7.7% |
| 2024-09-30 | $44.7B | $6.9B | $2.2B | $4.6B | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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 Improvement
Operating cash flow was higher compared to both the prior quarter and the same quarter last year, contributing to the increase in free cash flow.
This strengthens the company's cash generation capability in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable while operating cash flow increased and capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin.
Compared with the prior quarter, revenue was slightly higher, operating cash flow improved, capital expenditure was lower, and free cash flow and its margin strengthened. Versus the same quarter a year ago, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow and its margin improved.
Monitor future capital expenditure levels, as the current decline may be temporary given the company's planned investments in battery cell manufacturing joint ventures.