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 improved compared to the prior quarter, while free cash flow and its margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that improved from the prior quarter but weakened from the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Compared to the same quarter last year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$203.0M
Capital spending and related asset purchases.
FCF margin
26.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $7.7B | $1.9B | $154.0M | $1.8B | 22.9% |
| 2024-06-30 | $7.9B | $1.5B | $157.0M | $1.4B | 17.3% |
| 2024-09-30 | $7.8B | $1.6B | $169.0M | $1.4B | 18.4% |
| 2024-12-31 | $8.4B | $2.4B | $203.0M | $2.2B | 26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 Recovery
Operating cash flow increased from the prior quarter, driving a higher free cash flow and margin. This sequential improvement was the strongest observable change among the supplied metrics.
The sequential rise in operating cash flow was the primary factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that improved from the prior quarter but weakened from the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all increased. Compared to the same quarter last year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and margin were lower.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.