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 decreased compared to the prior quarter and the same quarter last year. Free cash flow improved from the prior quarter but was significantly lower than the year-ago period.
- Operating cash flow as a proportion of revenue weakened versus the prior quarter and the year-ago quarter. Capital expenditure increased relative to both comparison periods, contributing to a lower free cash flow margin compared to the year-ago quarter, though the margin improved from the prior quarter.
- Compared to the prior quarter, revenue was lower but free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$947.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$585.0M
Capital spending and related asset purchases.
FCF margin
2.9%
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 | $36.3B | $4.0B | $481.0M | $3.5B | 9.6% |
| 2023-09-30 | $40.9B | $5.0B | $420.0M | $4.5B | 11.1% |
| 2023-12-31 | $36.3B | $1.1B | $532.0M | $591.0M | 1.6% |
| 2024-03-31 | $32.7B | $1.5B | $585.0M | $947.0M | 2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter. The filing attributes the year-over-year decline to lower operating results and an unfavorable change in working capital.
The lower operating cash flow was the primary factor behind the year-over-year reduction 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 weakened versus the prior quarter and the year-ago quarter. Capital expenditure increased relative to both comparison periods, contributing to a lower free cash flow margin compared to the year-ago quarter, though the margin improved from the prior quarter.
Compared to the prior quarter, revenue was lower but free cash flow and free cash flow margin were higher. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the change in working capital, which was a net use of cash in the current quarter according to the filing.