Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased versus both the prior quarter and the same quarter last year, while capital expenditure declined. The result was a higher free cash flow and a markedly improved free cash flow margin.
- Revenue was modestly higher than both prior periods. Operating cash flow improved compared to the preceding quarter and the year-ago quarter, while capital expenditure decreased relative to both. These movements produced a free cash flow that was higher than both comparison periods and a free cash flow margin that was substantially higher than both.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$831.0M
Capital spending and related asset purchases.
FCF margin
29.9%
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 | $6.2B | $2.4B | $1.0B | $1.4B | 22.3% |
| 2024-03-31 | $6.0B | $2.1B | $797.0M | $1.3B | 22.0% |
| 2024-06-30 | $6.0B | $1.9B | $902.0M | $1.0B | 16.8% |
| 2024-09-30 | $6.1B | $2.7B | $831.0M | $1.8B | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 expansion with reduced capex
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This combination was the strongest observable driver of the higher free cash flow and free cash flow margin.
Free cash flow and free cash flow margin reached their highest levels among the three reported periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modestly higher than both prior periods. Operating cash flow improved compared to the preceding quarter and the year-ago quarter, while capital expenditure decreased relative to both. These movements produced a free cash flow that was higher than both comparison periods and a free cash flow margin that was substantially higher than both.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor whether operating cash flow can sustain its recent increase relative to revenue.