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 sequentially, though free cash flow margin remained below the prior year’s level. Revenue was stable versus a year ago, while capital expenditure was lower in both comparisons.
- Revenue was essentially unchanged from a year earlier. Operating cash flow increased from the prior quarter, and with lower capital expenditure, free cash flow rose further. The free cash flow margin widened sequentially but narrowed compared to the year-ago quarter.
- Compared with the preceding quarter, revenue was slightly higher, operating cash flow was higher, and free cash flow improved. Versus the same quarter one year earlier, revenue was stable; operating cash flow and free cash flow were lower; capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$272.0M
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 | $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% |
| 2024-09-28 | $10.6B | $2.2B | $272.0M | $1.9B | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower quarter over quarter and year over year. This reduction was the most concrete factor contributing to the sequential improvement in free cash flow.
Lower capital expenditure directly boosted free cash flow in the current period, but sustainability of this trend merits attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially unchanged from a year earlier. Operating cash flow increased from the prior quarter, and with lower capital expenditure, free cash flow rose further. The free cash flow margin widened sequentially but narrowed compared to the year-ago quarter.
Compared with the preceding quarter, revenue was slightly higher, operating cash flow was higher, and free cash flow improved. Versus the same quarter one year earlier, revenue was stable; operating cash flow and free cash flow were lower; capital expenditure was also lower.
Monitor the trajectory of operating cash flow relative to revenue, as it has weakened year-over-year despite stable top-line results.