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. Free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly higher than the prior quarter and lower than a year ago, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin followed the same pattern.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$154.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $7.3B | -$200.0M | $150.0M | -$350.0M | -4.8% |
| 2023-09-30 | $7.4B | $1.3B | $158.0M | $1.1B | 14.8% |
| 2023-12-31 | $8.0B | $2.6B | $145.0M | $2.5B | 30.8% |
| 2024-03-31 | $7.7B | $1.9B | $154.0M | $1.8B | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Year-over-year cash generation improvement
Free cash flow and free cash flow margin were both higher compared to the same quarter one year earlier, driven by a higher operating cash flow and a lower capital expenditure.
This strengthened the company's cash conversion efficiency relative to the prior year.
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 higher than a year ago. Capital expenditure was slightly higher than the prior quarter and lower than a year ago, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin followed the same pattern.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite a smaller revenue drop.