Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow declined quarter-over-quarter yet improved year-over-year, resulting in a free cash flow margin that narrowed from the previous quarter but widened from a year ago. The filing notes that management uses adjusted free cash flow and other non-GAAP measures to evaluate performance.
- Operating cash flow funded capital expenditure, yielding free cash flow. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue and all cash flow metrics improved, with free cash flow margin rising.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$797.0M
Capital spending and related asset purchases.
FCF margin
16.3%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $20.6B | $5.3B | $734.0M | $4.6B | 22.4% |
| 2023-09-30 | $21.9B | $4.9B | $925.0M | $4.0B | 18.2% |
| 2023-12-31 | $21.4B | $5.1B | $817.0M | $4.3B | 20.0% |
| 2024-03-31 | $20.2B | $4.1B | $797.0M | $3.3B | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Decline from Prior Quarter
Operating cash flow decreased from the prior quarter, leading to a lower free cash flow despite a slight reduction in capital expenditure. The filing indicates that management evaluates performance using adjusted free cash flow, a non-GAAP measure.
The decrease in operating cash flow reduced the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow funded capital expenditure, yielding free cash flow. The free cash flow margin reflects the proportion of revenue converted to free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue and all cash flow metrics improved, with free cash flow margin rising.
Monitor the level of capital expenditure as it decreased slightly from the prior quarter but increased year-over-year, impacting free cash flow generation.