Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow rose while capital expenditure held stable, lifting free cash flow and margin. Versus the same quarter last year, free cash flow and margin were slightly lower despite similar revenue and higher operating cash flow.
- Revenue was stable compared to both prior periods. Operating cash flow increased from the prior quarter but was slightly higher than the year-ago quarter, while capital expenditure was relatively unchanged. The resulting free cash flow and margin improved from the prior quarter but weakened from the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow with similar capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was slightly higher but capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.8B
Cash generated by operations before capital spending.
CapEx
$783.0M
Capital spending and related asset purchases.
FCF margin
24.2%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-30 | $20.5B | $5.8B | $783.0M | $5.0B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Strength
Operating cash flow increased from the prior quarter and was slightly above the year-ago level, providing the primary lift to free cash flow. This occurred while revenue was essentially flat, indicating a favorable shift in cash generation efficiency.
The sequential improvement in free cash flow margin was directly tied to the higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both prior periods. Operating cash flow increased from the prior quarter but was slightly higher than the year-ago quarter, while capital expenditure was relatively unchanged. The resulting free cash flow and margin improved from the prior quarter but weakened from the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow with similar capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was slightly higher but capital expenditure was also higher.
Monitor whether operating cash flow can sustain its sequential improvement relative to capital expenditure trends.