Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow improved significantly versus the prior quarter and was higher than the year-ago quarter.
- Operating cash flow was higher than both comparison periods, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin strengthened compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher. Versus the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $22.1B | $3.2B | $1.2B | $2.0B | 9.2% |
| 2023-09-30 | $21.1B | $2.2B | $1.3B | $944.0M | 4.5% |
| 2023-12-31 | $24.9B | $2.4B | $2.0B | $362.0M | 1.5% |
| 2024-03-31 | $21.7B | $3.3B | $1.0B | $2.3B | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, despite lower revenue. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow, combined with lower capital expenditure versus the prior quarter, drove a significant increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both comparison periods, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin strengthened compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher. Versus the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it shifted from higher than the year-ago level to lower than the prior quarter.