Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from the same quarter last year. Free cash flow turned positive from a negative prior quarter and improved slightly from the year-ago quarter.
- Operating cash flow was positive and significantly higher than the prior quarter's negative figure, while capital expenditure was lower. This resulted in a positive free cash flow margin, contrasting with the prior quarter's negative margin and slightly above the year-ago margin.
- Compared to the prior quarter, revenue was lower and operating cash flow improved from negative to positive, while capital expenditure decreased. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$77.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
11.8%
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 | $14.2B | $3.8B | $1.4B | $2.4B | 16.8% |
| 2023-09-30 | $14.5B | $880.0M | $1.8B | -$962.0M | -6.6% |
| 2023-12-31 | $13.6B | -$910.0M | $2.1B | -$3.0B | -21.8% |
| 2024-03-31 | $12.5B | $2.8B | $1.4B | $1.5B | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1195.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.6B | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the prior quarter, which was the strongest observable driver of the free cash flow improvement. This shift occurred alongside lower capital expenditure.
The positive operating cash flow directly enabled the company to generate positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and significantly higher than the prior quarter's negative figure, while capital expenditure was lower. This resulted in a positive free cash flow margin, contrasting with the prior quarter's negative margin and slightly above the year-ago margin.
Compared to the prior quarter, revenue was lower and operating cash flow improved from negative to positive, while capital expenditure decreased. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was slightly higher.
Monitor the trend in operating cash flow relative to revenue, as it shifted from negative to positive this quarter.