Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion rate was supported by higher operating cash flow relative to the prior quarter.
- Revenue was stable sequentially, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin improved. Versus the same quarter last year, free cash flow and margin were lower, driven by a decrease in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $29.5B | $1.2B | $114.0M | $1.1B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 Recovery
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow. This improvement occurred despite stable revenue.
The stronger operating cash flow was the main factor behind the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow increased significantly, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, free cash flow and margin improved. Versus the same quarter last year, free cash flow and margin were lower, driven by a decrease in operating cash flow.
Monitor the trend in operating cash flow, as it is the primary driver of free cash flow variability.