Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased from the prior quarter, leading to a higher free cash flow margin. However, compared to the same quarter last year, both operating cash flow and free cash flow margin were lower.
- Operating cash flow of the quarter converted a portion of revenue into free cash flow after capital expenditure. The free cash flow margin improved from the previous quarter but remained below the year-ago level.
- Sequentially, revenue, operating cash flow, and free cash flow all improved, while capital expenditure decreased. Year over year, revenue was slightly higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$487.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $37.9B | $3.2B | $487.0M | $2.8B | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 181.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Sequential operating cash flow growth
Operating cash flow increased from the prior quarter, providing the primary lift to free cash flow.
This improvement was the main factor behind the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the quarter converted a portion of revenue into free cash flow after capital expenditure. The free cash flow margin improved from the previous quarter but remained below the year-ago level.
Sequentially, revenue, operating cash flow, and free cash flow all improved, while capital expenditure decreased. Year over year, revenue was slightly higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
Monitor the trajectory of operating cash flow, as the filing notes that working capital changes influenced cash flows in the first half of the year.