Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it was slightly lower than the same quarter last year. Operating cash flow remained stable year over year, while capital expenditure increased.
- Revenue was stable compared to the same quarter last year, and operating cash flow was similar, but higher capital expenditure reduced free cash flow. The free cash flow margin weakened slightly year over year but improved significantly from the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Versus the same quarter last year, revenue was slightly higher, operating cash flow was stable, but free cash flow was lower due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
5.6%
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 |
|---|---|---|---|---|---|
| 2023-06-17 | $22.3B | $2.4B | $932.0M | $1.5B | 6.6% |
| 2023-09-09 | $23.5B | $5.6B | $1.0B | $4.6B | 19.6% |
| 2024-03-23 | $18.3B | -$1.0B | $614.0M | -$1.7B | -9.1% |
| 2024-06-15 | $22.5B | $2.4B | $1.1B | $1.3B | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Operating Cash Flow Recovery
Operating cash flow turned from negative in the prior quarter to positive in the current quarter, driving a significant improvement in free cash flow. This was the strongest observable driver of the quarter's cash conversion.
The recovery in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter last year, and operating cash flow was similar, but higher capital expenditure reduced free cash flow. The free cash flow margin weakened slightly year over year but improved significantly from the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning from negative to positive. Versus the same quarter last year, revenue was slightly higher, operating cash flow was stable, but free cash flow was lower due to higher capital expenditure.
Monitor the trend in capital expenditure, as it increased compared to both the prior quarter and the same quarter last year, directly impacting free cash flow.