Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially as operating cash flow rose while capital expenditure fell. Compared to the same quarter last year, the margin was lower despite higher revenue, reflecting a weaker operating cash flow relative to revenue.
- Revenue was lower than the prior quarter, but operating cash flow was higher, resulting in an improved cash conversion rate. Capital expenditure was significantly lower, which further supported free cash flow and margin.
- Sequentially, free cash flow margin improved from the prior quarter. Year over year, free cash flow margin weakened as operating cash flow did not increase proportionally with revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$100.0M
Capital spending and related asset purchases.
FCF margin
23.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $9.2B | $2.3B | $100.0M | $2.2B | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower compared to the prior quarter, contributing to a higher free cash flow.
This reduction directly supported the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow was higher, resulting in an improved cash conversion rate. Capital expenditure was significantly lower, which further supported free cash flow and margin.
Sequentially, free cash flow margin improved from the prior quarter. Year over year, free cash flow margin weakened as operating cash flow did not increase proportionally with revenue.
Monitor the level of capital expenditure, as it had a notable impact on free cash flow this quarter.