Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved sequentially, while the margin was also higher than the year-ago period.
- Operating cash flow grew faster than revenue, resulting in an improved free cash flow margin. Capital expenditure increased, but free cash flow still rose.
- Compared to the immediately preceding quarter, all metrics were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$74.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$23.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$37.2B
Cash generated by operations before capital spending.
CapEx
$13.9B
Capital spending and related asset purchases.
FCF margin
36.0%
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 | $56.5B | $30.6B | $9.9B | $20.7B | 36.6% |
| 2023-12-31 | $62.0B | $18.9B | $9.7B | $9.1B | 14.7% |
| 2024-03-31 | $61.9B | $31.9B | $11.0B | $21.0B | 33.9% |
| 2024-06-30 | $64.7B | $37.2B | $13.9B | $23.3B | 36.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.6B | 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 increased more than revenue, driving free cash flow higher despite higher capital expenditure.
This strong cash generation supported the improvement in 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 grew faster than revenue, resulting in an improved free cash flow margin. Capital expenditure increased, but free cash flow still rose.
Compared to the immediately preceding quarter, all metrics were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
Capital expenditure levels should be monitored as they increased relative to the prior periods.