Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Revenue increased while operating cash flow rose at a faster pace, leading to higher free cash flow after capital expenditure. The free cash flow margin expanded as a result.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was slightly higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$688.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
17.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $6.0B | $1.8B | $2.5B | -$721.0M | -11.9% |
| 2024-03-31 | $6.6B | $1.3B | $1.8B | -$459.0M | -6.9% |
| 2024-06-30 | $6.5B | $2.7B | $2.1B | $563.0M | 8.7% |
| 2024-09-30 | $7.3B | $3.6B | $2.3B | $1.3B | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.8% | 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.
Stronger Operating Cash Flow
Operating cash flow increased from both the prior quarter and the year-ago quarter, outpacing the rise in revenue. This was the primary observable factor behind the improvement in free cash flow and margin.
Higher operating cash flow, combined with lower capital expenditure versus last year, drove free cash flow to a higher level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, leading to higher free cash flow after capital expenditure. The free cash flow margin expanded as a result.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was slightly higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences free cash flow generation.