Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, free cash flow margin declined, indicating a weaker cash conversion rate.
- Operating cash flow was lower than the prior quarter but similar to the year-ago level. Capital expenditure remained stable, so free cash flow decreased sequentially and was unchanged year over year, resulting in a lower margin.
- Sequentially, revenue improved while operating cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher but operating cash flow was slightly lower, with free cash flow unchanged and margin reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$379.0M
Capital spending and related asset purchases.
FCF margin
29.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $9.0B | $3.3B | $311.0M | $3.0B | 33.1% |
| 2024-03-31 | $8.8B | $241.0M | $417.0M | -$176.0M | -2.0% |
| 2024-06-30 | $9.5B | $4.6B | $370.0M | $4.3B | 45.0% |
| 2024-09-30 | $9.9B | $3.3B | $379.0M | $3.0B | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.1% | 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.
Cash conversion pressure
Free cash flow margin declined from both the prior quarter and the year-ago period, reflecting a decrease in operating cash flow while revenue increased.
This suggests less efficient conversion of revenue into free cash flow during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but similar to the year-ago level. Capital expenditure remained stable, so free cash flow decreased sequentially and was unchanged year over year, resulting in a lower margin.
Sequentially, revenue improved while operating cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher but operating cash flow was slightly lower, with free cash flow unchanged and margin reduced.
Monitor the trend of operating cash flow relative to revenue, as the margin weakened despite higher sales.