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 declined compared to the immediately preceding quarter but improved versus the same quarter a year earlier. The free cash flow margin followed a similar pattern, decreasing sequentially while remaining higher year-over-year.
- Revenue remained stable relative to the prior quarter, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a weaker free cash flow margin.
- Compared to the immediately preceding quarter, both operating cash flow and free cash flow were lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, although capital expenditure also increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$387.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 |
|---|---|---|---|---|---|
| 2023-09-24 | $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% |
| 2024-06-23 | $9.4B | $3.1B | $387.0M | $2.7B | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 Trend
Operating cash flow decreased sequentially despite stable revenue, while it increased compared to the same quarter last year. This dual movement highlights the variability in cash generation.
The decline in operating cash flow relative to the prior quarter directly reduced free cash flow, emphasizing the need to track future cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable relative to the prior quarter, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a weaker free cash flow margin.
Compared to the immediately preceding quarter, both operating cash flow and free cash flow were lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, although capital expenditure also increased.
Monitor the trend of capital expenditure as it increased sequentially and year-over-year, absorbing a larger share of operating cash flow.