Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter but weakened compared to the same quarter last year. The margin followed a similar pattern, rising from the prior quarter while declining year over year.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, while capital expenditure remained relatively stable across all periods. The resulting free cash flow and margin improved sequentially but declined year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow despite slightly lower revenue. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$355.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 | $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% |
| 2024-09-29 | $17.1B | $2.4B | $355.0M | $2.1B | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, which directly lifted free cash flow and margin despite a slight drop in revenue. This was the strongest observable driver of the quarter's sequential performance.
The higher operating cash flow more than offset the lower revenue, resulting in improved free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, while capital expenditure remained relatively stable across all periods. The resulting free cash flow and margin improved sequentially but declined year over year.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow despite slightly lower revenue. Versus the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow declined while revenue was slightly higher.
Monitor the trajectory of operating cash flow, as it was the primary factor behind the sequential improvement but also the year-over-year decline.