Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened substantially from both comparison periods.
- Operating cash flow rose more than revenue, while capital expenditure increased only modestly, leading to a higher free cash flow margin. This indicates a stronger cash conversion from revenue into free cash flow during the quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Versus the same quarter one year earlier, all metrics were higher, with capital expenditure slightly lower than the prior year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$976.0M
Capital spending and related asset purchases.
FCF margin
20.7%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $21.4B | $7.5B | $967.0M | $6.5B | 30.5% |
| 2023-12-31 | $21.4B | $7.9B | $1.6B | $6.3B | 29.3% |
| 2024-03-31 | $21.4B | $3.7B | $807.0M | $2.9B | 13.3% |
| 2024-06-30 | $22.4B | $5.6B | $976.0M | $4.7B | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Improvement
Operating cash flow rose sequentially and year-over-year, outpacing revenue growth in both comparisons. This was the strongest observable driver behind the increase in free cash flow and the improvement in margin.
Higher operating cash flow directly contributed to a stronger free cash flow margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, while capital expenditure increased only modestly, leading to a higher free cash flow margin. This indicates a stronger cash conversion from revenue into free cash flow during the quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Versus the same quarter one year earlier, all metrics were higher, with capital expenditure slightly lower than the prior year.
Monitor whether the operating cash flow level can be sustained at or near the current level relative to revenue in future quarters.