Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative prior quarter but remained well below the year-ago level. The cash conversion rate was low relative to revenue, reflecting a significant gap between operating cash flow and net income.
- Revenue increased compared to both the prior quarter and the year-ago quarter, yet operating cash flow was substantially lower than the year-ago period, resulting in a free cash flow margin that improved from the prior quarter's negative level but weakened sharply from the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, while capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were significantly lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$401.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$743.0M
Capital spending and related asset purchases.
FCF margin
0.4%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $92.9B | $11.0B | $829.0M | $10.2B | 11.0% |
| 2023-09-30 | $92.4B | $6.9B | $838.0M | $6.1B | 6.6% |
| 2023-12-31 | $94.4B | -$5.2B | $959.0M | -$6.2B | -6.5% |
| 2024-03-31 | $99.8B | $1.1B | $743.0M | $401.0M | 0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -28.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.2B | 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 Gap
Despite higher revenue, operating cash flow was substantially lower than the year-ago quarter, driving a sharp decline in free cash flow and margin. The filing notes a large increase in accounts receivable from the prior year-end, which may have absorbed cash.
The weakened cash generation from operations constrained free cash flow relative to the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter, yet operating cash flow was substantially lower than the year-ago period, resulting in a free cash flow margin that improved from the prior quarter's negative level but weakened sharply from the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, while capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were significantly lower, and the free cash flow margin weakened.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's conversion was notably lower than the year-ago period.