Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased sharply compared to both the prior quarter and the same quarter last year, driven by a notable improvement in operating cash flow. The free cash flow margin strengthened significantly, reflecting higher cash conversion from revenue.
- Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a much higher free cash flow. Capital expenditure remained relatively stable, so the increase in free cash flow was driven by operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing the largest relative gains.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.9B
Cash generated by operations before capital spending.
CapEx
$991.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $94.4B | -$5.2B | $959.0M | -$6.2B | -6.5% |
| 2024-03-31 | $99.8B | $1.1B | $743.0M | $401.0M | 0.4% |
| 2024-06-30 | $98.9B | $6.7B | $853.0M | $5.9B | 6.0% |
| 2024-09-30 | $100.8B | $13.9B | $991.0M | $13.0B | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 213.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Lifts Free Cash Flow
Operating cash flow was significantly higher than both the prior quarter and the year-ago quarter, while revenue grew at a more moderate pace. This drove a substantial increase in free cash flow and a much improved free cash flow margin.
The higher free cash flow and margin strengthen the company's cash generation profile for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a much higher free cash flow. Capital expenditure remained relatively stable, so the increase in free cash flow was driven by operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing the largest relative gains.
Monitor whether operating cash flow can sustain its current level relative to revenue, as it was the primary driver of the quarter's free cash flow improvement.