Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased sequentially but increased year-over-year. Free cash flow improved sharply from the prior quarter but was slightly lower than the year-ago period.
- Operating cash flow increased relative to the sequential quarter, and free cash flow margin improved, reflecting higher cash generation from revenue.
- Compared to the preceding quarter, free cash flow was substantially higher, driven by stronger operating cash flow. Versus the same quarter last year, free cash flow was slightly lower despite higher revenue, as capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$69.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$16.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.8B
Cash generated by operations before capital spending.
CapEx
$12.0B
Capital spending and related asset purchases.
FCF margin
20.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $74.6B | $28.7B | $6.9B | $21.8B | 29.2% |
| 2023-09-30 | $76.7B | $30.7B | $8.1B | $22.6B | 29.5% |
| 2023-12-31 | $86.3B | $18.9B | $11.0B | $7.9B | 9.1% |
| 2024-03-31 | $80.5B | $28.8B | $12.0B | $16.8B | 20.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.9% | 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 Improvement
Operating cash flow rose sequentially, outpacing the decline in revenue, leading to higher free cash flow.
This improvement was the primary factor for the free cash flow increase versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the sequential quarter, and free cash flow margin improved, reflecting higher cash generation from revenue.
Compared to the preceding quarter, free cash flow was substantially higher, driven by stronger operating cash flow. Versus the same quarter last year, free cash flow was slightly lower despite higher revenue, as capital expenditure rose.
Monitor capital expenditure trends as they have increased notably from both prior periods.