Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was slightly lower than the preceding quarter but noticeably higher than a year earlier. With capital expenditure lower quarter over quarter, free cash flow rose, yielding a higher free cash flow margin.
- Compared to the prior quarter, revenue was lower while free cash flow was higher because capital expenditure decreased more than operating cash flow. Versus the same quarter last year, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$49.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$12.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$19.2B
Cash generated by operations before capital spending.
CapEx
$6.4B
Capital spending and related asset purchases.
FCF margin
35.2%
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 | $32.0B | $17.3B | $6.1B | $11.2B | 34.9% |
| 2023-09-30 | $34.1B | $20.4B | $6.5B | $13.9B | 40.7% |
| 2023-12-31 | $40.1B | $19.4B | $7.6B | $11.8B | 29.4% |
| 2024-03-31 | $36.5B | $19.2B | $6.4B | $12.8B | 35.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.6% | 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.
Improved Free Cash Flow Conversion
Free cash flow margin strengthened versus both the prior quarter and the year-ago period, driven by higher operating cash flow relative to revenue and a lower capital expenditure burden.
The company generated more free cash flow per dollar of revenue compared with both earlier periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly lower than the preceding quarter but noticeably higher than a year earlier. With capital expenditure lower quarter over quarter, free cash flow rose, yielding a higher free cash flow margin.
Compared to the prior quarter, revenue was lower while free cash flow was higher because capital expenditure decreased more than operating cash flow. Versus the same quarter last year, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor the trajectory of capital expenditure, which declined sequentially and year over year.