Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow margin slightly weakened. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. Capital expenditure decreased from the prior quarter but was unchanged from the year-ago quarter, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow improved, while free cash flow margin weakened slightly. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$745.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $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% |
| 2024-06-30 | $15.0B | $2.9B | $1.2B | $1.7B | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.6B | 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 year-ago quarter, providing a stronger base for cash generation. Operating cash flow increased sequentially despite a lower conversion rate.
Higher revenue supported a sequential increase in free cash flow, even as capital expenditure remained stable year-over-year.
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 lower than both the prior quarter and the year-ago quarter. Capital expenditure decreased from the prior quarter but was unchanged from the year-ago quarter, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow improved, while free cash flow margin weakened slightly. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin all weakened.
Monitor the trend in free cash flow margin, which weakened sequentially and declined more sharply versus the year-ago quarter.