Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to both the prior quarter and the same quarter a year ago, driven by a substantial increase in operating cash flow. Revenue was higher than both periods, while capital expenditure was slightly lower.
- Revenue increased, and operating cash flow rose at a faster rate, leading to a higher free cash flow. Capital expenditure declined modestly. As a result, the free cash flow margin improved compared to both the prior quarter and the same quarter a year ago.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, and capital expenditure was slightly lower. Compared to the same quarter a year ago, operating cash flow and free cash flow were higher, and capital expenditure was lower. The free cash flow margin improved in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.3B
Cash generated by operations before capital spending.
CapEx
$783.0M
Capital spending and related asset purchases.
FCF margin
51.1%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $16.7B | $9.3B | $783.0M | $8.5B | 51.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 269.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.5B | 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 Growth
Operating cash flow grew more than revenue, which was the primary factor behind the free cash flow margin improvement.
This strengthened the company's cash generation and financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow rose at a faster rate, leading to a higher free cash flow. Capital expenditure declined modestly. As a result, the free cash flow margin improved compared to both the prior quarter and the same quarter a year ago.
Compared to the prior quarter, operating cash flow and free cash flow were higher, and capital expenditure was slightly lower. Compared to the same quarter a year ago, operating cash flow and free cash flow were higher, and capital expenditure was lower. The free cash flow margin improved in both comparisons.
The company's operating cash flow was reduced by milestone and option payments related to collaborations in the first nine months; the trend of such payments should be monitored.