Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to the same quarter one year earlier but weakened relative to the immediately preceding quarter. Revenue increased over both prior periods, while operating cash flow declined from the prior quarter.
- Operating cash flow of one point eight billion dollars converted into free cash flow of one point seven billion dollars after capital expenditure of forty-four million dollars, yielding a free cash flow margin of fourteen point three percent.
- Revenue and operating cash flow were higher compared to the same quarter one year earlier, with free cash flow and margin improved. Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
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
$44.0M
Capital spending and related asset purchases.
FCF margin
14.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $12.0B | $1.8B | $44.0M | $1.7B | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 Supporting Year-Over-Year Cash Improvement
The current quarter’s revenue is higher than both the immediately preceding quarter and the same quarter one year earlier, contributing to a stronger free cash flow margin compared to the year-ago period.
Higher revenue provided a base for free cash flow to be significantly larger than the year-ago level, despite the quarter-over-quarter decline in cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of one point eight billion dollars converted into free cash flow of one point seven billion dollars after capital expenditure of forty-four million dollars, yielding a free cash flow margin of fourteen point three percent.
Revenue and operating cash flow were higher compared to the same quarter one year earlier, with free cash flow and margin improved. Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
Monitor whether the quarter-over-quarter decline in operating cash flow and free cash flow margin continues or reverses in upcoming periods.