Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, free cash flow turned negative due to lower operating cash flow and higher capital expenditure. The margin also turned negative compared to prior periods.
- Revenue decreased, operating cash flow dropped significantly, and capital expenditure increased, resulting in negative free cash flow and a negative margin.
- Compared to the previous quarter, free cash flow shifted from positive to negative, and the margin weakened. Compared to the same quarter last year, free cash flow also deteriorated from slightly positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$242.0M
Cash generated by operations before capital spending.
CapEx
$2.8B
Capital spending and related asset purchases.
FCF margin
-11.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $24.9B | $3.1B | $2.1B | $1.0B | 4.0% |
| 2023-09-30 | $23.4B | $3.3B | $2.5B | $848.0M | 3.6% |
| 2023-12-31 | $25.2B | $4.4B | $2.3B | $2.1B | 8.2% |
| 2024-03-31 | $21.3B | $242.0M | $2.8B | -$2.5B | -11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -182.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $9.1B | 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 Decline
Operating cash flow fell sharply from the prior quarter and year-ago quarter, contributing to the negative free cash flow.
The decline in operating cash flow was the strongest driver of the negative free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased, operating cash flow dropped significantly, and capital expenditure increased, resulting in negative free cash flow and a negative margin.
Compared to the previous quarter, free cash flow shifted from positive to negative, and the margin weakened. Compared to the same quarter last year, free cash flow also deteriorated from slightly positive to negative.
Monitor the trend of capital expenditure relative to operating cash flow.