Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from the prior quarter and from a year ago, while free cash flow was stable year over year but lower than the prior quarter. The free cash flow margin weakened sequentially but was slightly below the year-ago level.
- Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure increased both sequentially and year over year, resulting in free cash flow that was unchanged from a year ago but lower than the prior quarter.
- Compared to the prior quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter a year ago, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was stable, while free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $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% |
| 2024-12-31 | $21.9B | $5.5B | $2.2B | $3.3B | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$72.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue was higher than both the prior quarter and the same quarter a year ago, providing a stronger base for cash generation.
Higher revenue supported operating cash flow that was above the year-ago level, despite a sequential decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure increased both sequentially and year over year, resulting in free cash flow that was unchanged from a year ago but lower than the prior quarter.
Compared to the prior quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter a year ago, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was stable, while free cash flow margin was slightly lower.
Monitor the trend in capital expenditure, which increased both sequentially and year over year, as it directly affects free cash flow conversion.