Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow margin improved year over year but weakened sequentially.
- Operating cash flow was stable sequentially and higher year over year. Capital expenditure was higher than the prior quarter but lower than a year ago, resulting in free cash flow that was slightly lower than the prior quarter and higher than a year ago.
- Compared to the prior quarter, revenue was stable while free cash flow margin weakened. Compared to the same quarter a year ago, revenue was higher and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$917.0M
Capital spending and related asset purchases.
FCF margin
32.7%
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 | $14.9B | $1.1B | $704.0M | $386.0M | 2.6% |
| 2024-06-30 | $13.3B | -$1.8B | $637.0M | -$2.4B | -18.2% |
| 2024-09-29 | $17.7B | $6.7B | $651.0M | $6.1B | 34.3% |
| 2024-12-31 | $17.8B | $6.7B | $917.0M | $5.8B | 32.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1415.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$63.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year revenue growth
Revenue was higher than the same quarter a year ago, contributing to a higher free cash flow margin despite a slightly lower free cash flow margin than the prior quarter.
The year-over-year revenue increase was the strongest observable driver of the improved free cash flow margin compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable sequentially and higher year over year. Capital expenditure was higher than the prior quarter but lower than a year ago, resulting in free cash flow that was slightly lower than the prior quarter and higher than a year ago.
Compared to the prior quarter, revenue was stable while free cash flow margin weakened. Compared to the same quarter a year ago, revenue was higher and free cash flow margin improved.
Monitor the trend in capital expenditure, which was higher sequentially and could pressure free cash flow if revenue does not increase.