Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year, resulting in higher free cash flow and an improved margin. The conversion from revenue to cash was strong.
- Revenue was higher than both prior periods, while operating cash flow increased more than proportionally, leading to a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was substantially higher, and free cash flow margin improved. Compared to the same quarter one year earlier, all metrics were higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
23.7%
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 | $5.8B | $1.5B | $145.0M | $1.4B | 23.8% |
| 2024-03-31 | $5.2B | $204.0M | $167.0M | $37.0M | 0.7% |
| 2024-06-30 | $5.4B | $633.0M | $152.0M | $481.0M | 8.9% |
| 2024-09-30 | $5.5B | $1.5B | $170.0M | $1.3B | 23.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 156.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.6B | 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 expansion
Operating cash flow increased significantly from the prior quarter and the year-ago period, outpacing the growth in revenue and capital expenditure.
This improvement was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods, while operating cash flow increased more than proportionally, leading to a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was substantially higher, and free cash flow margin improved. Compared to the same quarter one year earlier, all metrics were higher and the margin improved.
Monitor the sustainability of operating cash flow levels, as the company identifies exchange rate risk as a significant market risk exposure in its filing.