Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the same quarter last year, but free cash flow weakened significantly as operating cash flow declined while capital expenditure remained elevated. Compared to the prior quarter, both revenue and free cash flow were lower, with free cash flow margin contracting sharply.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the same quarter last year, while capital expenditure remained at a similar level, resulting in a free cash flow margin that was weaker than both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow was substantially lower. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$247.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$875.0M
Capital spending and related asset purchases.
FCF margin
0.7%
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 |
|---|---|---|---|---|---|
| 2023-08-12 | $33.9B | $1.5B | $926.0M | $578.0M | 1.7% |
| 2023-11-04 | $34.0B | $504.0M | $953.0M | -$449.0M | -1.3% |
| 2024-02-03 | $37.1B | $1.9B | $997.0M | $923.0M | 2.5% |
| 2024-08-17 | $33.9B | $1.1B | $875.0M | $247.0M | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 was lower than both the prior quarter and the same quarter last year, while revenue was stable year-over-year. This was the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow, as capital expenditure did not decrease proportionally.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the same quarter last year, while capital expenditure remained at a similar level, resulting in a free cash flow margin that was weaker than both comparison periods.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow was substantially lower. Versus the same quarter one year earlier, revenue was stable, but operating cash flow and free cash flow were both lower.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago quarter despite stable revenue.