Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and year-over-year, reflecting higher cash generation relative to revenue.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure remained stable sequentially and declined year-over-year. This combination drove free cash flow and free cash flow margin higher in the current quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher, with capital expenditure lower and free cash flow margin notably stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.1B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
20.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $20.2B | $6.1B | $2.0B | $4.2B | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.7% | 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, while capital expenditure was unchanged sequentially and lower year-over-year. This drove free cash flow higher and expanded the free cash flow margin.
The combination of higher operating cash flow and stable or lower capital expenditure directly improved 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 proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure remained stable sequentially and declined year-over-year. This combination drove free cash flow and free cash flow margin higher in the current quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher, with capital expenditure lower and free cash flow margin notably stronger.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.