Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter and also rose compared to the same quarter last year. The improvement was driven by higher operating cash flow despite a slight increase in capital expenditure.
- Revenue was slightly lower than a year ago but higher than the prior quarter. Operating cash flow increased compared to both periods, while capital expenditure was slightly higher than the prior quarter and the year-ago quarter. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
- Compared to the prior quarter, free cash flow and free cash flow margin strengthened substantially. Versus the same quarter last year, free cash flow and free cash flow margin also improved, though revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
28.5%
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 | $2.2B | $3.2B | $970.0M | $2.3B | 101.2% |
| 2024-03-31 | $6.7B | $2.0B | $1.8B | $224.0M | 3.3% |
| 2024-06-30 | $6.8B | $2.4B | $1.8B | $623.0M | 9.2% |
| 2024-09-30 | $7.0B | $3.7B | $1.7B | $2.0B | 28.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.1B | 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 increased compared to both the prior quarter and the same quarter last year, providing the primary support for the improvement in free cash flow.
Higher operating cash flow drove the sequential and year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than a year ago but higher than the prior quarter. Operating cash flow increased compared to both periods, while capital expenditure was slightly higher than the prior quarter and the year-ago quarter. The resulting free cash flow and free cash flow margin both improved sequentially and year-over-year.
Compared to the prior quarter, free cash flow and free cash flow margin strengthened substantially. Versus the same quarter last year, free cash flow and free cash flow margin also improved, though revenue was lower.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.