Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin expanded significantly compared with both periods.
- Revenue increased from the prior quarter and was slightly higher than a year ago. Operating cash flow rose substantially, and capital expenditure declined compared with both the prior quarter and the year-ago quarter, resulting in a much higher free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
8.8%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $21.7B | $3.3B | $1.0B | $2.3B | 10.5% |
| 2024-06-30 | $21.8B | $2.0B | $933.0M | $1.1B | 4.9% |
| 2024-09-30 | $22.2B | $1.5B | $843.0M | $655.0M | 2.9% |
| 2024-12-31 | $25.3B | $3.3B | $1.1B | $2.2B | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.9B | 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 increased substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred alongside a decline in capital expenditure, further boosting free cash flow.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow and margin to levels well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and was slightly higher than a year ago. Operating cash flow rose substantially, and capital expenditure declined compared with both the prior quarter and the year-ago quarter, resulting in a much higher free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin was higher.
Monitor the level of capital expenditure in future quarters, as its decline was a key factor in the free cash flow improvement.