Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's cash conversion was strong, with revenue generating positive operating cash flow and free cash flow. Compared to the prior quarter, operating cash flow and free cash flow turned positive, and compared to the same quarter last year, all metrics improved.
- Revenue led to operating cash flow that, after capital expenditure, produced free cash flow and a higher free cash flow margin than the prior quarter and the year-ago quarter.
- Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow and free cash flow improved from negative to positive sequentially and increased year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$803.0M
Capital spending and related asset purchases.
FCF margin
27.3%
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 |
|---|---|---|---|---|---|
| 2024-03-29 | $11.3B | $528.0M | $370.0M | $158.0M | 1.4% |
| 2024-06-28 | $12.4B | $3.6B | $422.0M | $3.2B | 25.6% |
| 2024-09-27 | $11.9B | -$1.3B | $469.0M | -$1.7B | -14.6% |
| 2024-12-31 | $11.5B | $4.0B | $803.0M | $3.1B | 27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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 recovery
Operating cash flow shifted from negative to positive, the primary factor behind the quarter's free cash flow generation.
This turnaround restored free cash flow after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue led to operating cash flow that, after capital expenditure, produced free cash flow and a higher free cash flow margin than the prior quarter and the year-ago quarter.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow and free cash flow improved from negative to positive sequentially and increased year-over-year.
Monitor capital expenditure, which rose sequentially but remained below the year-ago level.