Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened significantly from the prior quarter and the same quarter last year, driven by a lower operating cash flow despite higher revenue. Capital expenditure increased, further reducing free cash flow and margin.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, leading to a free cash flow margin that weakened compared to both periods. Capital expenditure was slightly higher than the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$690.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
3.9%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $16.2B | $2.5B | $1.1B | $1.3B | 8.2% |
| 2023-12-31 | $17.3B | $2.7B | $1.2B | $1.5B | 8.8% |
| 2024-03-31 | $17.3B | $2.5B | $1.1B | $1.4B | 7.8% |
| 2024-06-30 | $17.5B | $2.0B | $1.3B | $690.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$40.0B | 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
The current quarter's operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This weakening was the primary observable factor behind the reduced free cash flow.
The lower operating cash flow directly reduced free cash flow and margin, making cash conversion less efficient than in the comparable periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower, leading to a free cash flow margin that weakened compared to both periods. Capital expenditure was slightly higher than the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of accounts receivable and income tax payments, as the filing cites negative working capital changes driven by these items.