Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but significantly lower than the prior quarter. Free cash flow margin improved sharply versus the prior quarter and was slightly higher than a year ago.
- Operating cash flow was higher than revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was lower than the prior quarter, contributing to the strong cash conversion.
- Compared to the prior quarter, revenue was lower while free cash flow was higher, leading to a much improved free cash flow margin. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and free cash flow was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
108.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $2.2B | $3.4B | $1.0B | $2.3B | 108.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1941.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 47.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.2B | 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 was higher than both the prior quarter and the same quarter last year, despite revenue being lower than the prior quarter. This drove free cash flow higher than the prior quarter.
The strong operating cash flow relative to revenue was the primary factor behind the elevated free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was lower than the prior quarter, contributing to the strong cash conversion.
Compared to the prior quarter, revenue was lower while free cash flow was higher, leading to a much improved free cash flow margin. Versus the same quarter last year, revenue was stable, operating cash flow was higher, and free cash flow was similar.
Monitor the relationship between revenue and operating cash flow, as operating cash flow exceeded revenue this quarter.