Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, primarily due to a larger increase in capital expenditure relative to operating cash flow.
- Operating cash flow rose year over year but declined from the prior quarter, while capital expenditure increased on both comparisons. This resulted in free cash flow being lower than both the prior quarter and the year-ago quarter, and the free cash flow margin contracted accordingly.
- Compared to the prior quarter, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue and operating cash flow were higher, yet free cash flow was lower and the margin contracted.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$72.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$34.2B
Cash generated by operations before capital spending.
CapEx
$14.9B
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $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% |
| 2024-09-30 | $65.6B | $34.2B | $14.9B | $19.3B | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure increased substantially compared to both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow. This was the strongest observable factor behind the decline in free cash flow and margin.
The higher capital expenditure directly reduced free cash flow and compressed the margin, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose year over year but declined from the prior quarter, while capital expenditure increased on both comparisons. This resulted in free cash flow being lower than both the prior quarter and the year-ago quarter, and the free cash flow margin contracted accordingly.
Compared to the prior quarter, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter last year, revenue and operating cash flow were higher, yet free cash flow was lower and the margin contracted.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its faster growth has compressed free cash flow margin.