Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved sequentially and remained stable compared to the same quarter last year. Operating cash flow was higher than the prior quarter and consistent with the year-ago period.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved margin, while capital expenditure also rose.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$116.7M
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $4.8B | $650.0M | $97.7M | $552.2M | 11.4% |
| 2023-12-31 | $4.8B | $702.0M | $106.4M | $595.7M | 12.4% |
| 2024-03-31 | $5.1B | $795.1M | $79.2M | $715.9M | 14.1% |
| 2024-06-30 | $5.2B | $1.2B | $116.7M | $1.1B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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, driving the sequential improvement in free cash flow.
This improvement was the primary factor behind the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved margin, while capital expenditure also rose.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were stable.
Monitor the trend in capital expenditure as it increased from both comparison periods.