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 declined from the prior quarter and the year-ago quarter, while capital expenditure also decreased. Free cash flow margin weakened slightly from the prior quarter but remained stable compared to the same quarter last year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but similar to the year-ago quarter, reflecting a stable conversion rate. Capital expenditure was reduced, which partially offset the decline in operating cash flow, resulting in free cash flow that was lower than both comparison periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue and operating cash flow were slightly lower, free cash flow was lower, but the free cash flow margin was essentially stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
51.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $6.5B | $124.0M | $48.0M | $76.0M | 1.2% |
| 2023-09-30 | $6.3B | $3.0B | $40.0M | $2.9B | 46.4% |
| 2023-12-31 | $6.0B | $3.2B | $53.0M | $3.2B | 53.1% |
| 2024-03-31 | $5.6B | $2.9B | $35.0M | $2.8B | 51.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.4B | 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 Decline
Operating cash flow was lower than both the preceding quarter and the same quarter one year earlier, while revenue also decreased but to a lesser extent. This was the primary factor behind the reduction in free cash flow.
The decline in operating cash flow drove a reduction in free cash flow and a slight weakening of 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.
Operating cash flow as a proportion of revenue was lower than the prior quarter but similar to the year-ago quarter, reflecting a stable conversion rate. Capital expenditure was reduced, which partially offset the decline in operating cash flow, resulting in free cash flow that was lower than both comparison periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue and operating cash flow were slightly lower, free cash flow was lower, but the free cash flow margin was essentially stable.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago quarter while revenue also decreased.