Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure. Sequentially, free cash flow and margin weakened due to an increase in capital expenditure.
- Revenue was stable compared to the prior quarter but lower than the year-ago quarter. Operating cash flow was unchanged sequentially but higher year-over-year, resulting in a free cash flow margin that improved from the prior year but declined from the immediately preceding quarter.
- Compared to the preceding quarter, free cash flow and margin were lower as capital expenditure increased while revenue and operating cash flow remained flat. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by a higher operating cash flow and a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$922.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 | $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% |
| 2024-12-31 | $6.1B | $2.7B | $922.0M | $1.7B | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.2B | 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 Growth
Operating cash flow was higher compared to the same quarter one year earlier, and capital expenditure was lower, resulting in a stronger free cash flow.
The combination of higher operating cash flow and lower capital expenditure from the year-ago level drove the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter but lower than the year-ago quarter. Operating cash flow was unchanged sequentially but higher year-over-year, resulting in a free cash flow margin that improved from the prior year but declined from the immediately preceding quarter.
Compared to the preceding quarter, free cash flow and margin were lower as capital expenditure increased while revenue and operating cash flow remained flat. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by a higher operating cash flow and a lower capital expenditure.
Monitor the level of capital expenditure, which increased sequentially and contributed to the quarter's decline in free cash flow.