Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, leading to higher free cash flow and margin. Capital expenditure was stable relative to the prior quarter and slightly higher than the year-ago period.
- The company converted revenue into operating cash flow, which after capital expenditure yielded positive free cash flow. The free cash flow margin improved from both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher; capital expenditure was slightly lower. Compared to the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$370.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 |
|---|---|---|---|---|---|
| 2023-09-24 | $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% |
| 2024-06-30 | $18.1B | $1.9B | $370.0M | $1.5B | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, providing the primary support for higher free cash flow and margin expansion.
The increase in operating cash flow was the strongest factor driving the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted revenue into operating cash flow, which after capital expenditure yielded positive free cash flow. The free cash flow margin improved from both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher; capital expenditure was slightly lower. Compared to the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing notable improvement.
Monitor the trajectory of operating cash flow, which the filing notes is the primary source of liquidity and is dependent on customer payments.