Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but weakened compared to the same quarter last year. Revenue was lower than the prior quarter but higher than the year-ago period.
- Operating cash flow was stable year over year but slipped from the prior quarter. Lower capital expenditure supported free cash flow relative to the preceding quarter.
- Compared with the prior quarter, free cash flow increased while revenue declined, driven by a significant reduction in capital spending. Versus the year-ago quarter, free cash flow and margin both contracted despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$547.0M
Capital spending and related asset purchases.
FCF margin
29.9%
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 | $6.5B | $1.7B | $526.0M | $1.1B | 17.7% |
| 2023-09-30 | $6.7B | $3.0B | $570.0M | $2.5B | 36.7% |
| 2023-12-31 | $6.4B | $2.5B | $757.0M | $1.7B | 27.0% |
| 2024-03-31 | $6.2B | $2.4B | $547.0M | $1.8B | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.9% | 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.
Capital expenditure reduction
Capital expenditure fell meaningfully from the prior quarter and rose only modestly year over year. This primarily drove the sequential improvement in free cash flow despite lower operating cash flow.
Sustained low capital spending may limit long-term asset renewal and revenue growth potential.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable year over year but slipped from the prior quarter. Lower capital expenditure supported free cash flow relative to the preceding quarter.
Compared with the prior quarter, free cash flow increased while revenue declined, driven by a significant reduction in capital spending. Versus the year-ago quarter, free cash flow and margin both contracted despite higher revenue.
Monitor whether lower capital expenditure persists and how it affects future revenue and operational capacity.