Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the same quarter last year but slightly higher than the prior quarter. Operating cash flow and free cash flow improved compared to both the prior quarter and the same quarter last year, leading to a higher free cash flow margin.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow and free cash flow margin were higher compared to both periods.
- Compared to the prior quarter, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
15.7%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $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% |
| 2024-06-29 | $10.5B | $2.0B | $301.0M | $1.7B | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.1B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, which was the strongest observable driver of the higher free cash flow and margin.
The higher operating cash flow directly supported a higher free cash flow and margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow and free cash flow margin were higher compared to both periods.
Compared to the prior quarter, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow and margin were higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it was lower than the prior quarter but slightly higher than the year-ago quarter.