Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2024, free cash flow turned positive after a negative prior quarter, though it remained well below the level of the same quarter last year. The improvement was driven by a shift from a large operating cash outflow to a positive inflow, while capital expenditure decreased.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive from a large negative figure in the prior quarter but was significantly lower than the same quarter last year. Capital expenditure decreased from both comparison periods. As a result, free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, and the margin turned positive. Compared to the same quarter last year, free cash flow and margin were lower, as operating cash flow was substantially lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$246.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$423.0M
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $26.7B | $3.2B | $264.0M | $2.9B | 10.9% |
| 2023-09-30 | $26.4B | $1.3B | $234.0M | $1.0B | 3.9% |
| 2023-12-31 | $26.5B | -$7.1B | $283.0M | -$7.4B | -28.0% |
| 2024-03-31 | $29.6B | $423.0M | $177.0M | $246.0M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 Turnaround
Operating cash flow shifted from a large negative in the prior quarter to a positive figure, which was the primary factor behind the improvement in free cash flow. This change occurred alongside an increase in revenue.
The positive operating cash flow enabled the company to generate positive free cash flow this quarter, reversing the prior quarter's large negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive from a large negative figure in the prior quarter but was significantly lower than the same quarter last year. Capital expenditure decreased from both comparison periods. As a result, free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, and the margin turned positive. Compared to the same quarter last year, free cash flow and margin were lower, as operating cash flow was substantially lower despite higher revenue.
Monitor the trajectory of operating cash flow, as it remains significantly below the level of the same quarter last year despite higher revenue.