Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company, a global provider of technology and data for financial markets, reported stable revenue sequentially and higher revenue compared to the same quarter last year. Operating cash flow and free cash flow were higher than both prior quarters, and free cash flow margin improved.
- With revenue unchanged from the prior quarter and higher than a year ago, the increase in operating cash flow drove free cash flow higher. Capital expenditure was also higher than both prior periods, but the free cash flow margin improved due to the larger operating cash flow.
- Compared to the previous quarter, revenue was stable while operating cash flow, free cash flow, and margin all improved. Compared to the same quarter last year, all metrics were higher, with the largest improvement in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
43.3%
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 | $2.8B | $1.0B | $58.0M | $951.0M | 34.0% |
| 2024-06-30 | $2.9B | $1.2B | $75.0M | $1.1B | 38.7% |
| 2024-09-30 | $3.0B | $898.0M | $79.0M | $819.0M | 27.0% |
| 2024-12-31 | $3.0B | $1.5B | $194.0M | $1.3B | 43.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 188.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.5B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the increase in free cash flow.
The strong operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged from the prior quarter and higher than a year ago, the increase in operating cash flow drove free cash flow higher. Capital expenditure was also higher than both prior periods, but the free cash flow margin improved due to the larger operating cash flow.
Compared to the previous quarter, revenue was stable while operating cash flow, free cash flow, and margin all improved. Compared to the same quarter last year, all metrics were higher, with the largest improvement in free cash flow.
Monitor the trend in capital expenditure, which increased relative to both prior periods.