Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter one year earlier. Revenue was higher than a year ago but lower than the prior quarter, while operating cash flow declined more sharply than revenue.
- Operating cash flow as a percentage of revenue was lower than both comparable periods, and capital expenditure was higher, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter.
- Operating cash flow and free cash flow were lower than the prior quarter and the same quarter one year earlier. Revenue was higher than the year-ago quarter but lower than the prior quarter, and free cash flow margin declined accordingly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$157.0M
Capital spending and related asset purchases.
FCF margin
23.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $6.3B | $2.7B | $80.0M | $2.6B | 41.8% |
| 2023-09-30 | $6.5B | $3.2B | $104.0M | $3.1B | 47.9% |
| 2023-12-31 | $6.5B | $4.1B | $77.0M | $4.1B | 61.9% |
| 2024-03-31 | $6.3B | $1.7B | $157.0M | $1.5B | 23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.3B | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, and capital expenditure increased, leading to a materially lower free cash flow margin. The company's liquidity discussion notes reliance on cash from operations to fund obligations.
The reduced cash generation from operations may constrain the company's ability to fund investments and obligations as outlined in its liquidity discussion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than both comparable periods, and capital expenditure was higher, resulting in a free cash flow margin that was lower than the prior quarter and the year-ago quarter.
Operating cash flow and free cash flow were lower than the prior quarter and the same quarter one year earlier. Revenue was higher than the year-ago quarter but lower than the prior quarter, and free cash flow margin declined accordingly.
Monitor the trajectory of operating cash flow, given its decline from both the prior quarter and the year-ago period.