Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow increased significantly, driving a higher free cash flow margin.
- The company converted a substantial portion of revenue into operating cash flow, with modest capital expenditure, resulting in a free cash flow margin that improved compared to both the prior and year-ago quarters.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were higher. Relative to the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$184.0M
Capital spending and related asset purchases.
FCF margin
35.9%
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 |
|---|---|---|---|---|---|
| 2023-06-25 | $8.5B | $2.7B | $306.0M | $2.4B | 27.8% |
| 2023-09-24 | $8.6B | $4.1B | $293.0M | $3.8B | 44.0% |
| 2023-12-24 | $9.9B | $2.9B | $214.0M | $2.7B | 27.5% |
| 2024-03-24 | $9.4B | $3.6B | $184.0M | $3.4B | 35.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, more than offsetting the modest revenue decline from the prior quarter. The filing notes that the company relies on cash from operations as a principal liquidity source, and this quarter's performance reinforced that position.
This improvement directly lifted the free cash flow margin to a higher level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a substantial portion of revenue into operating cash flow, with modest capital expenditure, resulting in a free cash flow margin that improved compared to both the prior and year-ago quarters.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were higher. Relative to the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor the trajectory of operating cash flow, as it was the primary driver of the free cash flow improvement despite a slight revenue decline.