Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter, lifting free cash flow and its margin. However, compared to the same quarter last year, operating cash flow was lower and capital expenditure was higher, resulting in a lower free cash flow margin.
- Operating cash flow as a share of revenue was higher than the prior quarter, and capital expenditure was lower, driving free cash flow as a share of revenue higher. Compared to the year-ago quarter, operating cash flow as a share of revenue was lower and capital expenditure was higher, resulting in a lower free cash flow margin.
- Versus the prior quarter, free cash flow and its margin improved. Versus the year-ago quarter, free cash flow and its margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$925.0M
Capital spending and related asset purchases.
FCF margin
17.8%
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 | $20.2B | $4.1B | $797.0M | $3.3B | 16.3% |
| 2024-06-30 | $20.5B | $5.8B | $783.0M | $5.0B | 24.2% |
| 2024-09-30 | $21.7B | $4.3B | $993.0M | $3.3B | 15.2% |
| 2024-12-31 | $21.9B | $4.8B | $925.0M | $3.9B | 17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 increased from the prior quarter, supporting a higher free cash flow despite a year-over-year decline. The filing references non-GAAP measures including adjusted free cash flow, which management uses to evaluate performance.
The improvement in operating cash flow relative to the prior quarter was the primary factor in the enhanced free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter, and capital expenditure was lower, driving free cash flow as a share of revenue higher. Compared to the year-ago quarter, operating cash flow as a share of revenue was lower and capital expenditure was higher, resulting in a lower free cash flow margin.
Versus the prior quarter, free cash flow and its margin improved. Versus the year-ago quarter, free cash flow and its margin weakened.
Capital expenditure, which increased year-over-year and decreased sequentially, is a key item to monitor as it directly affects free cash flow.