Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year. Operating cash flow declined while capital expenditure rose relative to the preceding quarter.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow decreased from both comparison periods, and capital expenditure increased from the prior quarter, resulting in a lower free cash flow and margin.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow decreased while capital expenditure was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$730.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$361.0M
Capital spending and related asset purchases.
FCF margin
7.3%
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 | $10.6B | $2.4B | $803.0M | $1.6B | 15.3% |
| 2024-03-31 | $10.1B | -$706.0M | $270.0M | -$976.0M | -9.6% |
| 2024-06-30 | $10.2B | $1.4B | $320.0M | $1.1B | 10.8% |
| 2024-09-30 | $10.0B | $1.1B | $361.0M | $730.0M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.0B | 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 Decline
Operating cash flow was lower than both the immediately preceding quarter and the same quarter one year earlier. This was the primary observable factor behind the reduction in free cash flow and margin.
The decline in operating cash flow directly weakened free cash flow and margin for the quarter.
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 decreased from both comparison periods, and capital expenditure increased from the prior quarter, resulting in a lower free cash flow and margin.
Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow decreased while capital expenditure was stable.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago period.