Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened slightly versus the same quarter last year. The quarter's free cash flow margin was stable year-over-year and strengthened compared to the prior quarter.
- Revenue was roughly stable quarter-over-quarter, while operating cash flow and free cash flow both increased, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow were slightly lower, and the margin was stable.
- Revenue was higher than the same quarter one year earlier and roughly even with the prior quarter. Operating cash flow and free cash flow were higher sequentially but lower than the year-ago quarter. Capital expenditure increased moderately from both comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.0B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
31.0%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-29 | $22.5B | $8.0B | $1.0B | $7.0B | 31.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 258.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Stronger Cash Conversion vs. Prior Quarter
Free cash flow and the free cash flow margin both improved sequentially, with operating cash flow rising more than capital expenditure. This resulted in a higher proportion of revenue being converted into free cash flow.
The quarter delivered materially higher free cash flow and margin compared to the immediately preceding period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was roughly stable quarter-over-quarter, while operating cash flow and free cash flow both increased, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow were slightly lower, and the margin was stable.
Revenue was higher than the same quarter one year earlier and roughly even with the prior quarter. Operating cash flow and free cash flow were higher sequentially but lower than the year-ago quarter. Capital expenditure increased moderately from both comparison periods.
Monitor operating cash flow sustainability given its sequential improvement from a lower base while remaining below the year-ago level.