Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved markedly from the prior quarter and was slightly higher than a year ago.
- Operating cash flow on revenue yielded a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were higher, but capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$115.0M
Capital spending and related asset purchases.
FCF margin
43.4%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $7.0B | $3.1B | $115.0M | $3.0B | 43.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.6B | 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 growth
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, driving a higher free cash flow margin despite a moderate increase in capital expenditure.
This improvement in cash generation supported a stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow on revenue yielded a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, while capital expenditure was lower. Versus the same quarter last year, operating cash flow and free cash flow were higher, but capital expenditure was also higher.
Monitor the level of cash, cash equivalents and investments, which decreased from year-end levels as noted in the filing.