Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved both sequentially and year over year. The free cash flow margin rose to a level higher than the prior quarter and the year-ago period, reflecting stronger cash conversion.
- Operating cash flow grew at a faster rate than revenue, while capital expenditure declined, boosting free cash flow and the free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin increased. Compared to the same quarter one year earlier, all key cash flow metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
18.9%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $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% |
| 2024-09-30 | $11.2B | $2.2B | $42.0M | $2.1B | 18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 increased more than revenue, driven by strong earnings and working capital changes, leading to higher free cash flow.
This robust cash generation supported an improved free cash flow margin, enhancing financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew at a faster rate than revenue, while capital expenditure declined, boosting free cash flow and the free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin increased. Compared to the same quarter one year earlier, all key cash flow metrics improved.
Monitor working capital trends, especially changes in accrued insurance reserves and accounts receivable, which influenced operating cash flow.