Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly as operating cash flow rose, leading to a substantial increase in free cash flow and free cash flow margin. Revenue was stable sequentially but increased year over year, while capital expenditure declined compared to the prior year.
- Operating cash flow improved from the previous quarter and the year-ago quarter, more than offsetting a slight sequential increase in capital expenditure. As a result, free cash flow and free cash flow margin strengthened significantly.
- Compared with the immediately preceding quarter, revenue was slightly lower but operating cash flow improved, resulting in higher free cash flow and margin. Versus the same quarter one year earlier, all cash flow metrics improved, with capital expenditure notably lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
5.9%
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 | $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% |
| 2024-09-30 | $29.4B | $1.9B | $130.0M | $1.7B | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 360.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 Improvement
Operating cash flow increased both sequentially and year over year, driving a higher free cash flow margin. This improvement occurred while revenue held steady sequentially and grew from the prior year, and capital expenditure fell year over year.
Sustained operating cash flow generation supports the company's liquidity and financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from the previous quarter and the year-ago quarter, more than offsetting a slight sequential increase in capital expenditure. As a result, free cash flow and free cash flow margin strengthened significantly.
Compared with the immediately preceding quarter, revenue was slightly lower but operating cash flow improved, resulting in higher free cash flow and margin. Versus the same quarter one year earlier, all cash flow metrics improved, with capital expenditure notably lower.
Monitor the trend in capital expenditure given its reduction from a year ago, as it directly impacts free cash flow.