Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was higher than the prior quarter but lower than the same quarter last year. Free cash flow margin weakened significantly compared to both periods due to higher capital expenditure and lower operating cash flow.
- The conversion of revenue into free cash flow was low, as capital expenditure consumed a large portion of operating cash flow.
- Compared to the preceding quarter, revenue improved while free cash flow declined sharply. Versus the same quarter a year ago, both revenue and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$224.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $6.6B | $3.1B | $1.6B | $1.4B | 21.6% |
| 2023-09-30 | $7.3B | $3.1B | $1.6B | $1.5B | 20.8% |
| 2023-12-31 | $2.2B | $3.2B | $970.0M | $2.3B | 101.2% |
| 2024-03-31 | $6.7B | $2.0B | $1.8B | $224.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.7B | 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 intensity
Capital expenditure increased from both the prior quarter and the year-ago quarter, while operating cash flow decreased, squeezing free cash flow.
If capital spending remains elevated relative to operating cash flow, free cash flow may continue to be pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into free cash flow was low, as capital expenditure consumed a large portion of operating cash flow.
Compared to the preceding quarter, revenue improved while free cash flow declined sharply. Versus the same quarter a year ago, both revenue and free cash flow were lower.
Monitor the trajectory of capital expenditure relative to operating cash flow.