Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was level with the prior quarter while free cash flow improved markedly compared to both the preceding quarter and the same quarter last year. The free cash flow margin strengthened on a sequential and year-over-year basis.
- Revenue was unchanged relative to the previous quarter; however, operating cash flow rose, and capital expenditure was slightly lower, resulting in a much higher free cash flow and a stronger free cash flow margin.
- Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin were both significantly improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.5B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
13.3%
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 | $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% |
| 2024-09-30 | $17.5B | $3.5B | $1.2B | $2.3B | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$40.1B | 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 expansion
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure remained at a similar level. This combination drove a substantial increase in free cash flow and margin without reliance on a revenue increase.
The improved cash conversion efficiency is the strongest observable driver for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged relative to the previous quarter; however, operating cash flow rose, and capital expenditure was slightly lower, resulting in a much higher free cash flow and a stronger free cash flow margin.
Compared to the prior quarter, revenue was stable, operating cash flow was higher, capital expenditure was slightly lower, and free cash flow and margin were both significantly improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all increased.
Monitor whether revenue growth resumes or if the stable top-line becomes a recurring pattern.