Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, negative free cash flow persisted as capital expenditure exceeded operating cash flow. Revenue was stable relative to both the prior quarter and the same quarter last year.
- Operating cash flow turned positive, reversing from the prior quarter's negative level, though it remained lower than the year-ago quarter. Capital expenditure was modestly reduced versus both comparison periods, yet free cash flow remained negative due to the cash flow stream being insufficient to cover investment outlays.
- Compared to the prior quarter, free cash flow improved as operating cash flow recovered from negative to positive and capital expenditure edged lower. Versus the same quarter a year ago, free cash flow weakened slightly, with operating cash flow lower and capital expenditure broadly similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$5.7B
Capital spending and related asset purchases.
FCF margin
-26.4%
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 | $14.2B | $5.8B | $5.8B | $71.0M | 0.5% |
| 2023-12-30 | $15.4B | $4.6B | $6.7B | -$2.1B | -13.4% |
| 2024-03-30 | $12.7B | -$1.2B | $6.0B | -$7.2B | -56.5% |
| 2024-06-29 | $12.8B | $2.3B | $5.7B | -$3.4B | -26.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 210.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 44.3% | 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.
Cash Flow Recovery
The swing in operating cash flow from negative in the prior quarter to positive was the strongest observable driver, reflecting a meaningful improvement in cash generation from operations despite revenue being essentially flat.
This recovery directly reduced the free cash flow deficit compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive, reversing from the prior quarter's negative level, though it remained lower than the year-ago quarter. Capital expenditure was modestly reduced versus both comparison periods, yet free cash flow remained negative due to the cash flow stream being insufficient to cover investment outlays.
Compared to the prior quarter, free cash flow improved as operating cash flow recovered from negative to positive and capital expenditure edged lower. Versus the same quarter a year ago, free cash flow weakened slightly, with operating cash flow lower and capital expenditure broadly similar.
Monitor whether operating cash flow can sustain its positive trajectory and narrow the gap with capital expenditure.