Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin remained stable versus the year-ago period and strengthened sequentially.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly from the prior quarter and was also higher year over year, while capital expenditure rose compared to both periods. The resulting free cash flow and free cash flow margin improved sequentially and were higher than the same quarter last year.
- Compared to the prior quarter, free cash flow and free cash flow margin both strengthened, driven by a substantial increase in operating cash flow despite higher capital expenditure. Versus the same quarter last year, free cash flow was higher and the margin was stable, with operating cash flow growth outpacing the rise in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$70.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$21.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$31.9B
Cash generated by operations before capital spending.
CapEx
$11.0B
Capital spending and related asset purchases.
FCF margin
33.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $56.2B | $28.8B | $8.9B | $19.8B | 35.3% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$25.3B | 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 rose substantially from the prior quarter and was higher than the same quarter last year, providing the primary support for free cash flow improvement.
This driver enabled free cash flow to increase sequentially and year over year, with the margin remaining stable compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly from the prior quarter and was also higher year over year, while capital expenditure rose compared to both periods. The resulting free cash flow and free cash flow margin improved sequentially and were higher than the same quarter last year.
Compared to the prior quarter, free cash flow and free cash flow margin both strengthened, driven by a substantial increase in operating cash flow despite higher capital expenditure. Versus the same quarter last year, free cash flow was higher and the margin was stable, with operating cash flow growth outpacing the rise in capital expenditure.
Monitor the trajectory of capital expenditure, which increased from both the prior quarter and the year-ago period.