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 increased compared with the preceding quarter and the same quarter one year earlier. Free cash flow margin improved significantly, driven by higher operating cash flow and lower capital expenditure.
- Operating cash flow rose relative to revenue, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared with both prior periods.
- Compared with the preceding quarter, revenue was higher, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow and margin both improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$791.0M
Capital spending and related asset purchases.
FCF margin
30.1%
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 | $16.0B | $7.7B | $902.0M | $6.8B | 42.7% |
| 2023-12-31 | $14.6B | $246.0M | $989.0M | -$743.0M | -5.1% |
| 2024-03-31 | $15.8B | $3.1B | $861.0M | $2.2B | 14.1% |
| 2024-06-30 | $16.1B | $5.6B | $791.0M | $4.8B | 30.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.5B | 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 Strength
Operating cash flow increased notably from both the preceding quarter and the same quarter one year earlier, providing the primary lift to free cash flow. The filing attributed the year-to-date improvement to stronger operating performance.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow and margin to levels above both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared with both prior periods.
Compared with the preceding quarter, revenue was higher, operating cash flow was substantially higher, capital expenditure was lower, and free cash flow and margin both improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were also higher.
Monitor milestone and option payments related to collaborations, which the filing noted reduced operating cash flow in both the current and prior year periods.