Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow substantially improved from the prior quarter, lifting free cash flow and margin, but both were lower than the same quarter last year. The sequential rebound in cash generation was the most notable shift.
- Revenue was slightly higher than the prior quarter, while operating cash flow increased markedly, leading to a much higher free cash flow and margin. Capital expenditure was stable relative to the preceding quarter.
- Compared to the immediately preceding quarter, revenue was modestly higher, operating cash flow was substantially higher, and free cash flow and margin improved sharply. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.9B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
16.1%
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 |
|---|---|---|---|---|---|
| 2023-09-09 | $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% |
| 2024-09-07 | $23.3B | $4.9B | $1.1B | $3.8B | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 improvement
Operating cash flow rose sharply from the prior quarter, driving a corresponding increase in free cash flow. This improvement was the primary factor behind the higher free cash flow margin.
The stronger operating cash flow directly boosted the quarter's free cash flow and margin, reversing the prior period's lower conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, while operating cash flow increased markedly, leading to a much higher free cash flow and margin. Capital expenditure was stable relative to the preceding quarter.
Compared to the immediately preceding quarter, revenue was modestly higher, operating cash flow was substantially higher, and free cash flow and margin improved sharply. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and margin weakened.
Monitor the relationship between capital expenditure and operating cash flow, as spending was stable while cash generation varied significantly.