Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative as capital expenditure exceeded operating cash flow, though the deficit narrowed from the prior quarter. Revenue improved while operating cash flow strengthened, but free cash flow margin stayed negative.
- Operating cash flow rose relative to revenue, indicating improved cash conversion from sales. However, capital expenditure increased more than operating cash flow, resulting in negative free cash flow and a negative margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved from a larger deficit. Versus the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$15.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$6.5B
Capital spending and related asset purchases.
FCF margin
-18.1%
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 |
|---|---|---|---|---|---|
| 2023-12-30 | $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% |
| 2024-09-28 | $13.3B | $4.1B | $6.5B | -$2.4B | -18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 14.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.6% | 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.
Capital Expenditure Growth
Capital expenditure increased compared to both the prior quarter and the year-ago quarter, outpacing operating cash flow growth. This was the strongest observable factor behind the negative free cash flow.
Higher capital expenditure relative to operating cash flow sustained the negative free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, indicating improved cash conversion from sales. However, capital expenditure increased more than operating cash flow, resulting in negative free cash flow and a negative margin.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure increased, and free cash flow improved from a larger deficit. Versus the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow turned from positive to negative.
Monitor the gap between capital expenditure and operating cash flow, as it drives the free cash flow deficit.