Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, primarily due to lower operating cash flow despite stable revenue. Capital expenditure increased relative to the prior quarter, further pressuring free cash flow.
- Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow declined, while capital expenditure rose compared to the prior quarter, resulting in lower free cash flow and a narrower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were lower, with operating cash flow declining and capital expenditure increasing. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow fell while revenue was higher and capital expenditure was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.0B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
23.8%
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 | $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% |
| 2024-12-29 | $22.5B | $7.0B | $1.6B | $5.4B | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 156.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.3B | 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 Decline
Operating cash flow decreased from the prior quarter and from the same quarter last year, while revenue remained stable or increased. This decline, combined with higher capital expenditure versus the prior quarter, drove free cash flow lower.
The reduction in operating cash flow directly weakened free cash flow generation and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow declined, while capital expenditure rose compared to the prior quarter, resulting in lower free cash flow and a narrower free cash flow margin.
Compared to the prior quarter, free cash flow and margin were lower, with operating cash flow declining and capital expenditure increasing. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow fell while revenue was higher and capital expenditure was similar.
Monitor the trend in operating cash flow relative to revenue, as its decline against stable sales is the primary factor behind the weakened cash conversion.