Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow turned positive compared to a year ago, yet declined sharply from the preceding quarter.
- Operating cash flow was significantly reduced by capital expenditure, yielding a free cash flow below one billion and a narrow margin.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow declined substantially, and capital expenditure rose. Versus the same quarter a year earlier, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$907.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$3.2B
Capital spending and related asset purchases.
FCF margin
2.1%
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 | $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% |
| 2024-12-31 | $43.6B | $4.1B | $3.2B | $907.0M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -30.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.4% | 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 substantially from the prior quarter while revenue was only slightly lower. This decline was the main factor behind the reduced free cash flow.
The lower operating cash flow directly reduced free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly reduced by capital expenditure, yielding a free cash flow below one billion and a narrow margin.
Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow declined substantially, and capital expenditure rose. Versus the same quarter a year earlier, revenue and operating cash flow increased, capital expenditure decreased, and free cash flow improved from negative to positive.
Monitor capital expenditure levels, which increased from the prior quarter while operating cash flow fell.