Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter due to a significant increase in capital expenditure, despite higher operating cash flow. Compared to the same quarter last year, free cash flow improved as revenue and operating cash flow grew faster than capital expenditure.
- Revenue rose while operating cash flow increased, but the free cash flow margin weakened as capital expenditure grew more than proportionally. The conversion from revenue to free cash flow was lower than the prior quarter.
- Compared to the prior quarter, free cash flow was lower and the margin narrowed, driven by higher capital expenditure. Versus the same quarter last year, free cash flow and margin were both higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$54.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.0B
Cash generated by operations before capital spending.
CapEx
$14.4B
Capital spending and related asset purchases.
FCF margin
28.0%
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 | $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% |
| 2024-12-31 | $48.4B | $28.0B | $14.4B | $13.6B | 28.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $15.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose substantially from both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow. This was the strongest observable factor affecting free cash flow.
The higher capital expenditure directly reduced free cash flow and compressed the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased, but the free cash flow margin weakened as capital expenditure grew more than proportionally. The conversion from revenue to free cash flow was lower than the prior quarter.
Compared to the prior quarter, free cash flow was lower and the margin narrowed, driven by higher capital expenditure. Versus the same quarter last year, free cash flow and margin were both higher, supported by stronger operating cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase was the primary factor reducing free cash flow this quarter.