Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved significantly from the prior quarter, while capital expenditure was higher. The resulting free cash flow and margin both strengthened markedly.
- Revenue declined from the prior quarter, yet operating cash flow rose, leading to a much higher free cash flow margin. Compared with the same quarter a year earlier, revenue was lower but operating cash flow and free cash flow both increased, while the margin narrowed.
- Relative to the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow with its margin were substantially improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow was higher, though margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$504.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $8.3B | -$114.0M | $483.0M | -$597.0M | -7.2% |
| 2024-06-30 | $8.7B | $1.3B | $484.0M | $864.0M | 10.0% |
| 2024-09-30 | $8.6B | $670.0M | $368.0M | $302.0M | 3.5% |
| 2024-12-31 | $7.8B | $1.9B | $504.0M | $1.4B | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -234.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 recovery
Operating cash flow rose substantially from the prior quarter, despite a decline in revenue. This drove a large increase in free cash flow and margin.
The quarter’s cash generation strengthened significantly, improving liquidity flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, yet operating cash flow rose, leading to a much higher free cash flow margin. Compared with the same quarter a year earlier, revenue was lower but operating cash flow and free cash flow both increased, while the margin narrowed.
Relative to the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow with its margin were substantially improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow was higher, though margin declined.
Monitor the trend in capital expenditure relative to operating cash flow, as the current level is elevated compared with the preceding quarter.