Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin also strengthened in both comparisons.
- Revenue increased compared to the prior quarter and the year-ago quarter. Operating cash flow rose, and capital expenditure was higher than both prior periods, yet free cash flow still grew, resulting in an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$99.0M
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $9.3B | $966.0M | $61.0M | $905.0M | 9.7% |
| 2023-12-31 | $9.9B | $823.0M | $55.0M | $768.0M | 7.7% |
| 2024-03-31 | $10.1B | $1.4B | $57.0M | $1.4B | 13.4% |
| 2024-06-30 | $10.7B | $1.8B | $99.0M | $1.7B | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 was higher than both the prior quarter and the year-ago quarter, providing the primary support for the increase in free cash flow.
This improvement in operating cash flow directly contributed to the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter and the year-ago quarter. Operating cash flow rose, and capital expenditure was higher than both prior periods, yet free cash flow still grew, resulting in an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow margin showing improvement.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter.