Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow rose while capital expenditure held steady, lifting free cash flow and margin. Compared to the same quarter last year, free cash flow and margin were slightly higher, supported by a modest increase in revenue and operating cash flow.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased more than capital expenditure, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin strengthened significantly, driven by a notable rise in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with operating cash flow and revenue both modestly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
19.9%
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 | $8.3B | $2.7B | $1.2B | $1.6B | 19.0% |
| 2024-03-31 | $8.1B | $2.0B | $1.0B | $906.0M | 11.2% |
| 2024-06-30 | $8.3B | $1.9B | $1.1B | $796.0M | 9.6% |
| 2024-09-30 | $8.4B | $2.7B | $1.1B | $1.7B | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.6B | 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 increased from the prior quarter and was also higher than the year-ago period, while capital expenditure was essentially unchanged from the prior quarter and only slightly higher than a year ago. This combination drove the improvement in free cash flow and margin.
The stronger operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased more than capital expenditure, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin strengthened significantly, driven by a notable rise in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were slightly higher, with operating cash flow and revenue both modestly improved.
Monitor whether capital expenditure remains stable relative to operating cash flow, as it directly influences free cash flow conversion.