Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased while capital expenditure decreased, resulting in a higher free cash flow and an improved free cash flow margin.
- Operating cash flow as a percentage of revenue improved, and with lower capital expenditure, free cash flow conversion strengthened. The free cash flow margin rose compared to both the preceding quarter and the year-ago period.
- Compared to the immediately preceding quarter, free cash flow and its margin were higher, driven by both higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, the improvement was more pronounced, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
17.6%
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 | $19.3B | $5.3B | $2.4B | $2.9B | 14.9% |
| 2023-12-31 | $20.5B | $4.9B | $1.6B | $3.3B | 16.0% |
| 2024-03-31 | $19.6B | $5.1B | $2.6B | $2.5B | 12.5% |
| 2024-06-30 | $19.8B | $5.5B | $2.0B | $3.5B | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing a stronger base for free cash flow.
The higher operating cash flow, combined with reduced capital spending, significantly lifted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved, and with lower capital expenditure, free cash flow conversion strengthened. The free cash flow margin rose compared to both the preceding quarter and the year-ago period.
Compared to the immediately preceding quarter, free cash flow and its margin were higher, driven by both higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, the improvement was more pronounced, with operating cash flow higher and capital expenditure lower.
Monitor the sustainability of the lower capital expenditure level and its impact on future free cash flow generation.