Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly compared to both the prior quarter and the same quarter last year, driven by operating cash flow growth that outpaced revenue. Capital expenditure increased modestly but remained a small share of operating cash flow.
- Revenue increased from the prior quarter and the same quarter last year, while operating cash flow rose by a larger proportion, leading to a higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but the increase was modest relative to operating cash flow gains.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher as well, with free cash flow margin showing a notable increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5B
Cash generated by operations before capital spending.
CapEx
$281.0M
Capital spending and related asset purchases.
FCF margin
48.5%
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 | $8.1B | $5.8B | $295.0M | $5.5B | 67.7% |
| 2023-09-30 | $8.6B | $6.9B | $305.0M | $6.6B | 76.9% |
| 2023-12-31 | $8.6B | $3.6B | $267.0M | $3.3B | 38.8% |
| 2024-03-31 | $8.8B | $4.5B | $281.0M | $4.3B | 48.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | 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 growth
Operating cash flow increased more than revenue in the current quarter compared to both the prior quarter and the same quarter last year, resulting in a higher free cash flow margin.
The stronger operating cash flow was the primary factor behind the improved free cash flow generation.
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 the same quarter last year, while operating cash flow rose by a larger proportion, leading to a higher free cash flow margin. Capital expenditure was slightly higher than both comparison periods, but the increase was modest relative to operating cash flow gains.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, all metrics were higher as well, with free cash flow margin showing a notable increase.
Monitor capital expenditure trends, as the increase from both the prior quarter and the year-ago quarter may affect future free cash flow conversion if sustained.