Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter, while operating cash flow and free cash flow decreased sharply. Compared to the same quarter last year, cash flow metrics improved significantly from a negative base.
- Operating cash flow fell relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was slightly reduced but did not offset the decline in operating cash generation.
- Compared to the prior quarter, operating cash flow and free cash flow declined while revenue was unchanged, causing a weakened cash conversion. Versus the same quarter one year earlier, both operating and free cash flows improved from negative to positive, marking a strengthened position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$912.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $100.8B | $2.4B | $912.0M | $1.5B | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$51.6B | 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 Volatility
Operating cash flow in the current quarter was substantially lower than the preceding quarter despite steady revenue. This decline was the primary driver of the drop in free cash flow and margin.
The sharp reduction in operating cash flow weakened free cash flow generation despite unchanged revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, resulting in a lower free cash flow margin. Capital expenditure was slightly reduced but did not offset the decline in operating cash generation.
Compared to the prior quarter, operating cash flow and free cash flow declined while revenue was unchanged, causing a weakened cash conversion. Versus the same quarter one year earlier, both operating and free cash flows improved from negative to positive, marking a strengthened position.
Monitor whether the current quarter’s operating cash flow level recovers toward the higher prior-quarter amount.