Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, supporting a higher operating cash flow. Free cash flow improved sequentially but declined compared to the year-ago period, as capital expenditure rose significantly relative to last year.
- Operating cash flow rose relative to the prior quarter, while capital expenditure was slightly lower, resulting in a higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow remained stable, but a much higher capital expenditure reduced free cash flow and margin.
- Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow and margin improved. Versus the same quarter one year earlier, revenue was higher and operating cash flow was stable, but capital expenditure was significantly higher, leading to lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$55.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$30.7B
Cash generated by operations before capital spending.
CapEx
$13.1B
Capital spending and related asset purchases.
FCF margin
20.0%
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 | $86.3B | $18.9B | $11.0B | $7.9B | 9.1% |
| 2024-03-31 | $80.5B | $28.8B | $12.0B | $16.8B | 20.9% |
| 2024-06-30 | $84.7B | $26.6B | $13.2B | $13.5B | 15.9% |
| 2024-09-30 | $88.3B | $30.7B | $13.1B | $17.6B | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, driving an increase in operating cash flow sequentially.
The higher revenue was the primary factor behind the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the prior quarter, while capital expenditure was slightly lower, resulting in a higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow remained stable, but a much higher capital expenditure reduced free cash flow and margin.
Compared to the preceding quarter, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow and margin improved. Versus the same quarter one year earlier, revenue was higher and operating cash flow was stable, but capital expenditure was significantly higher, leading to lower free cash flow and margin.
Monitor the level of capital expenditure, which increased substantially year over year and pressured free cash flow.