Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both grew versus the prior quarter and the year-ago quarter. Free cash flow improved from the prior quarter but weakened slightly from the same quarter last year on margin.
- Operating cash flow as a proportion of revenue increased from the prior quarter, driving a higher free cash flow margin. Capital expenditure rose compared with both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher but the margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$52.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$16.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.7B
Cash generated by operations before capital spending.
CapEx
$8.3B
Capital spending and related asset purchases.
FCF margin
40.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-06-30 | $39.1B | $19.4B | $8.2B | $11.2B | 28.7% |
| 2024-09-30 | $40.6B | $24.7B | $8.3B | $16.5B | 40.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $15.0B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, and its proportion of revenue improved sequentially. This was the strongest observable driver of the quarter's free cash flow.
Higher operating cash flow was the primary factor behind the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased from the prior quarter, driving a higher free cash flow margin. Capital expenditure rose compared with both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was slightly higher but the margin was stable.
Monitor capital expenditure trends, as the increase from the year-ago quarter was notable.