Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved versus both the prior quarter and the same quarter last year, driven by lower capital expenditure and a higher operating cash flow margin. Revenue and operating cash flow were lower sequentially but higher year over year.
- Revenue of this quarter was lower than the previous quarter but higher than the year-ago quarter. Operating cash flow followed the same pattern, while capital expenditure was lower than both comparison periods. Free cash flow was lower sequentially but higher year over year, and the free cash flow margin improved due to a higher operating cash flow margin and lower capital expenditure relative to revenue.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, but free cash flow margin was higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$239.0M
Capital spending and related asset purchases.
FCF margin
27.2%
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 | $15.5B | $2.6B | $364.0M | $2.3B | 14.7% |
| 2023-09-30 | $14.8B | $3.1B | $281.0M | $2.8B | 18.8% |
| 2023-12-31 | $17.4B | $4.5B | $300.0M | $4.2B | 24.0% |
| 2024-03-31 | $14.5B | $4.2B | $239.0M | $3.9B | 27.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 244.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow margin improvement
The free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by a higher operating cash flow margin and a lower ratio of capital expenditure to revenue.
The higher margin indicates more efficient conversion of revenue into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of this quarter was lower than the previous quarter but higher than the year-ago quarter. Operating cash flow followed the same pattern, while capital expenditure was lower than both comparison periods. Free cash flow was lower sequentially but higher year over year, and the free cash flow margin improved due to a higher operating cash flow margin and lower capital expenditure relative to revenue.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, but free cash flow margin was higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin was also higher.
Monitor the level of capital expenditure, which decreased notably from both the prior quarter and the year-ago quarter, as its sustainability may affect future free cash flow margins.