Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply this quarter, driven by a substantial increase in operating cash flow. The free cash flow margin rose compared to both the prior quarter and the same quarter last year.
- Revenue grew, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was relatively stable, so the conversion from revenue to free cash flow strengthened.
- Compared to the preceding quarter, both operating cash flow and free cash flow improved, while the free cash flow margin also increased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and the margin was stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$277.0M
Capital spending and related asset purchases.
FCF margin
36.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-09-29 | $10.2B | $2.6B | $256.0M | $2.4B | 23.3% |
| 2024-12-29 | $11.7B | $4.6B | $277.0M | $4.3B | 36.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 significantly from both the prior quarter and the year-ago period, far outpacing the rise in revenue and capital expenditure. This was the primary factor behind the higher free cash flow and margin.
The company generated markedly more cash from operations, enabling a stronger free cash flow position without requiring a material increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was relatively stable, so the conversion from revenue to free cash flow strengthened.
Compared to the preceding quarter, both operating cash flow and free cash flow improved, while the free cash flow margin also increased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and the margin was stronger.
Monitor whether capital expenditure remains stable relative to revenue, as it directly affects free cash flow conversion.