Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow. Revenue was higher than the previous quarter and slightly higher than a year earlier, while capital expenditure decreased from the prior quarter but increased year-over-year.
- Operating cash flow exceeded capital expenditure by a larger margin than in the prior quarter, resulting in a higher free cash flow margin. The conversion of revenue into free cash flow improved as operating cash flow grew faster than revenue.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Year-over-year, revenue was slightly higher, operating cash flow and free cash flow were higher, and capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$989.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$316.0M
Capital spending and related asset purchases.
FCF margin
10.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $9.3B | $1.6B | $332.0M | $1.2B | 13.2% |
| 2024-03-31 | $9.3B | $1.3B | $299.0M | $1.0B | 11.0% |
| 2024-06-30 | $8.3B | $822.0M | $367.0M | $455.0M | 5.5% |
| 2024-09-30 | $9.2B | $1.3B | $316.0M | $989.0M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter and from the same quarter last year, providing the primary support for free cash flow growth.
The higher operating cash flow directly contributed to the expanded 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 exceeded capital expenditure by a larger margin than in the prior quarter, resulting in a higher free cash flow margin. The conversion of revenue into free cash flow improved as operating cash flow grew faster than revenue.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Year-over-year, revenue was slightly higher, operating cash flow and free cash flow were higher, and capital expenditure was also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased year-over-year despite a sequential decline.