Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and from the same quarter last year. Free cash flow margin weakened compared to both periods.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow and free cash flow margin both declined sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$552.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $19.9B | $4.7B | $805.0M | $3.9B | 19.6% |
| 2024-03-31 | $19.3B | $342.0M | $467.0M | -$125.0M | -0.6% |
| 2024-06-30 | $19.7B | $2.7B | $537.0M | $2.2B | 11.1% |
| 2024-09-30 | $20.1B | $2.5B | $552.0M | $2.0B | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Weakening
Operating cash flow decreased from the prior quarter and from the same quarter last year, even as revenue increased. This was the primary factor behind the lower free cash flow and free cash flow margin.
The decline in operating cash flow relative to revenue pressured cash conversion efficiency.
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 and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow and free cash flow margin both declined sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow, which declined sequentially and year-over-year despite higher revenue.