Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved in the current quarter compared to both the preceding quarter and the same period a year earlier, driven by stronger operating cash flow. The free cash flow margin also increased, reflecting enhanced cash conversion efficiency.
- Operating cash flow rose while capital expenditure increased moderately, resulting in higher free cash flow and an improved free cash flow margin. The company's focus on maximizing operating cash flows through revenue growth, margin expansion, and improved working capital turnover continues to support cash conversion.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were significantly higher, leading to a stronger free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, with the free cash flow margin also improving.
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
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$279.0M
Capital spending and related asset purchases.
FCF margin
17.7%
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 | $5.8B | $3.0B | $66.0M | $2.9B | 49.9% |
| 2024-03-31 | $8.2B | $448.0M | $233.0M | $215.0M | 2.6% |
| 2024-06-30 | $10.5B | $1.4B | $259.0M | $1.1B | 10.6% |
| 2024-09-30 | $9.7B | $2.0B | $279.0M | $1.7B | 17.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow improved notably in the current quarter, underpinning the increase in free cash flow and margin. This reflects the company's ongoing emphasis on cash generation through revenue growth, margin expansion, and working capital improvements.
The robust operating cash flow directly supported higher free cash flow and an improved margin relative to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure increased moderately, resulting in higher free cash flow and an improved free cash flow margin. The company's focus on maximizing operating cash flows through revenue growth, margin expansion, and improved working capital turnover continues to support cash conversion.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were significantly higher, leading to a stronger free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow all increased, with the free cash flow margin also improving.
Monitor capital expenditure levels as they rose modestly compared to both prior periods, which could influence future free cash flow if the trend accelerates.