Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved both sequentially and year-over-year, driven by stronger cash generation despite lower revenue. Cash conversion efficiency strengthened notably in the quarter.
- Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, more than offsetting a rise in capital expenditure and supporting a higher free cash flow margin.
- Revenue was lower than both the prior quarter and the year-ago period, yet free cash flow and margin were higher, marking a clear improvement in cash conversion. Operating cash flow strengthened while capital expenditure also increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$810.0M
Capital spending and related asset purchases.
FCF margin
4.2%
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 | $32.7B | $1.5B | $585.0M | $947.0M | 2.9% |
| 2024-06-30 | $37.9B | $3.2B | $487.0M | $2.8B | 7.3% |
| 2024-09-30 | $35.1B | $1.7B | $651.0M | $1.0B | 2.9% |
| 2024-12-31 | $33.1B | $2.2B | $810.0M | $1.4B | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 376.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 Improvement
The primary observable driver was higher operating cash flow compared to both the prior quarter and the same quarter last year, which directly increased free cash flow and margin even as capital expenditure grew.
This improvement in operating cash flow was the main factor behind the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, more than offsetting a rise in capital expenditure and supporting a higher free cash flow margin.
Revenue was lower than both the prior quarter and the year-ago period, yet free cash flow and margin were higher, marking a clear improvement in cash conversion. Operating cash flow strengthened while capital expenditure also increased.
Monitor the capital expenditure trajectory, as it rose from both the prior quarter and the year-ago quarter.