Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, while free cash flow and free cash flow margin also strengthened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year, and capital expenditure increased sequentially. The resulting free cash flow margin improved from the prior quarter but weakened compared to the year-ago period.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$480.0M
Capital spending and related asset purchases.
FCF margin
24.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $11.4B | $3.3B | $480.0M | $2.8B | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.1B | 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 increased from the prior quarter, supporting a higher free cash flow and an improved free cash flow margin. This was the strongest observable sequential driver among the supplied metrics.
The higher operating cash flow was the primary factor behind the sequential improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year, and capital expenditure increased sequentially. The resulting free cash flow margin improved from the prior quarter but weakened compared to the year-ago period.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the relationship between operating cash flow and capital expenditure, as the sequential increase in capital expenditure contributed to a narrower free cash flow margin relative to the year-ago quarter.