Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin were lower than the prior quarter but higher than the same quarter last year. Operating cash flow followed a similar pattern, while capital expenditure was lower in both comparisons.
- The conversion of revenue into free cash flow, measured by the free cash flow margin, weakened sequentially but improved relative to the year-ago period. The margin was supported by operating cash flow that was higher year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased. However, compared to the same quarter one year earlier, operating cash flow and free cash flow increased, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$904.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$347.0M
Capital spending and related asset purchases.
FCF margin
8.7%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $10.7B | $1.5B | $284.0M | $1.3B | 11.8% |
| 2023-09-30 | $10.6B | $2.4B | $332.0M | $2.1B | 19.7% |
| 2023-12-31 | $10.9B | $3.7B | $405.0M | $3.3B | 30.5% |
| 2024-03-30 | $10.3B | $1.3B | $347.0M | $904.0M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.9B | 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
Operating cash flow was lower than the prior quarter, and free cash flow also decreased. The change in operating cash flow was the most notable among the components, while capital expenditure was lower and provided a partial offset.
The lower operating cash flow was the primary factor behind the sequential reduction in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into free cash flow, measured by the free cash flow margin, weakened sequentially but improved relative to the year-ago period. The margin was supported by operating cash flow that was higher year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased. However, compared to the same quarter one year earlier, operating cash flow and free cash flow increased, while revenue was slightly lower.
Monitor the trend in operating cash flow, as it showed a marked decline from the prior quarter despite an improvement from the prior year.