Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue was lower than the prior quarter, and operating cash flow declined, resulting in lower free cash flow and a weakened free cash flow margin. Compared to the same quarter a year earlier, revenue was higher while operating cash flow was stable, but capital expenditure increased and free cash flow remained unchanged, leading to a lower margin.
- Revenue decreased from the prior quarter, with operating cash flow and capital expenditure also declining, resulting in free cash flow that was lower than the prior quarter. The free cash flow margin weakened compared to both the prior quarter and the same quarter a year earlier.
- Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the free cash flow margin weakened. Year over year, revenue was higher, operating cash flow and free cash flow were stable, capital expenditure was higher, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$378.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 |
|---|---|---|---|---|---|
| 2023-06-25 | $16.7B | $1.1B | $329.0M | $771.0M | 4.6% |
| 2023-09-24 | $16.9B | $2.9B | $364.0M | $2.5B | 15.0% |
| 2023-12-31 | $18.9B | $2.4B | $704.0M | $1.7B | 8.8% |
| 2024-03-31 | $17.2B | $1.6B | $378.0M | $1.3B | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow margin decline
The free cash flow margin was lower than both the prior quarter and the same quarter a year earlier, reflecting that free cash flow did not increase at the same rate as revenue.
This suggests that cash generation efficiency has weakened relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, with operating cash flow and capital expenditure also declining, resulting in free cash flow that was lower than the prior quarter. The free cash flow margin weakened compared to both the prior quarter and the same quarter a year earlier.
Sequentially, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the free cash flow margin weakened. Year over year, revenue was higher, operating cash flow and free cash flow were stable, capital expenditure was higher, and the free cash flow margin was lower.
Monitor the free cash flow margin, as it declined relative to both the prior quarter and the same quarter a year earlier.