Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the preceding quarter and the same quarter one year earlier, supported by a strong rise in operating cash flow despite a slight dip in revenue.
- Operating cash flow increased relative to revenue, driving free cash flow higher as capital expenditure remained relatively stable.
- Compared to the prior quarter, free cash flow and margin showed marked improvement. Versus the year-ago quarter, both metrics were also higher, though the increase was more moderate.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$581.0M
Capital spending and related asset purchases.
FCF margin
34.4%
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 | $3.5B | $1.3B | $647.0M | $639.0M | 18.1% |
| 2023-12-31 | $3.6B | $2.3B | $628.0M | $1.7B | 47.5% |
| 2024-03-31 | $3.4B | $1.2B | $619.0M | $570.0M | 16.7% |
| 2024-06-30 | $3.2B | $1.7B | $581.0M | $1.1B | 34.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.6B | 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 Strength
Operating cash flow rose significantly from the prior quarter even as revenue declined, indicating improved cash conversion efficiency.
This improvement was the primary factor behind the rise in free cash flow and the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, driving free cash flow higher as capital expenditure remained relatively stable.
Compared to the prior quarter, free cash flow and margin showed marked improvement. Versus the year-ago quarter, both metrics were also higher, though the increase was more moderate.
Monitor capital expenditure levels, as the current quarter saw an increase that could affect future free cash flow generation.