Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both prior periods, but operating cash flow declined, resulting in lower free cash flow and a weakened free cash flow margin. The company's cash conversion in this quarter was less efficient than in the comparable earlier periods.
- Revenue was higher, but operating cash flow was lower than the prior quarter and slightly lower than the year-ago quarter. Capital expenditure decreased relative to the year-ago quarter but was similar to the prior quarter. Free cash flow and its margin were lower than both comparison periods.
- Compared to the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue was higher; operating cash flow and free cash flow were slightly lower, and margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$78.3M
Capital spending and related asset purchases.
FCF margin
12.7%
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 | $8.5B | $2.0B | $103.9M | $1.9B | 22.1% |
| 2023-12-31 | $8.8B | $1.7B | $81.6M | $1.6B | 17.9% |
| 2024-03-31 | $9.4B | $2.2B | $75.7M | $2.1B | 22.8% |
| 2024-06-30 | $9.6B | $1.3B | $78.3M | $1.2B | 12.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased from both the prior quarter and the year-ago quarter.
Despite higher revenue, free cash flow and margin declined, indicating a weaker conversion of revenue into cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was lower than the prior quarter and slightly lower than the year-ago quarter. Capital expenditure decreased relative to the year-ago quarter but was similar to the prior quarter. Free cash flow and its margin were lower than both comparison periods.
Compared to the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue was higher; operating cash flow and free cash flow were slightly lower, and margin was lower.
Monitor the trend of operating cash flow relative to revenue, as it declined this quarter despite higher revenue.