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 year-ago quarter, supported by higher operating cash flow and a slightly larger capital expenditure. Compared with the preceding quarter, revenue was lower while free cash flow margin held roughly stable.
- Revenue remained at the same level as one year earlier, while operating cash flow increased, resulting in a higher free cash flow margin. Capital expenditure rose modestly, but the conversion from operating cash flow to free cash flow strengthened.
- Compared with the prior quarter, revenue and operating cash flow both decreased, yet free cash flow margin improved slightly as the decline in capital expenditure was proportionally smaller. Against the same quarter last year, revenue was stable while operating cash flow, free cash flow, and margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$807.0M
Capital spending and related asset purchases.
FCF margin
28.6%
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 | $6.2B | $2.4B | $547.0M | $1.8B | 29.9% |
| 2024-06-30 | $6.5B | $1.7B | $628.0M | $1.1B | 16.3% |
| 2024-09-30 | $6.9B | $2.7B | $794.0M | $1.9B | 28.3% |
| 2024-12-31 | $6.4B | $2.6B | $807.0M | $1.8B | 28.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.3B | 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 Growth
Operating cash flow increased year-over-year despite stable revenue, indicating stronger cash generation from operations. This directly drove the improvement in free cash flow.
Higher operating cash flow was the primary factor lifting free cash flow and margin relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained at the same level as one year earlier, while operating cash flow increased, resulting in a higher free cash flow margin. Capital expenditure rose modestly, but the conversion from operating cash flow to free cash flow strengthened.
Compared with the prior quarter, revenue and operating cash flow both decreased, yet free cash flow margin improved slightly as the decline in capital expenditure was proportionally smaller. Against the same quarter last year, revenue was stable while operating cash flow, free cash flow, and margin all increased.
Monitor the trajectory of revenue relative to operating cash flow, as a divergence could signal changes in cash conversion efficiency.