Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was robust, and free cash flow and margin were strong. Revenue decreased from the prior quarter but increased from the same quarter last year.
- A substantial portion of revenue was converted into operating cash flow. Capital expenditure was modest, and the free cash flow margin was solid.
- Compared to the preceding quarter, revenue was lower but operating cash flow was significantly higher, and free cash flow and margin were much higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$188.0M
Capital spending and related asset purchases.
FCF margin
5.2%
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 | $74.5B | -$1.1B | $78.0M | -$1.1B | -1.5% |
| 2023-09-30 | $77.2B | $965.0M | $75.0M | $890.0M | 1.2% |
| 2023-12-31 | $80.9B | $254.0M | $90.0M | $164.0M | 0.2% |
| 2024-03-31 | $76.4B | $4.1B | $188.0M | $4.0B | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 500.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 increase
Operating cash flow was significantly higher compared to both the prior quarter and the same quarter last year.
This increase was accompanied by higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
A substantial portion of revenue was converted into operating cash flow. Capital expenditure was modest, and the free cash flow margin was solid.
Compared to the preceding quarter, revenue was lower but operating cash flow was significantly higher, and free cash flow and margin were much higher. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and margin improved.
Monitor the company's working capital and debt to capital ratio, as noted in the filing.