Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but was lower compared to the same quarter last year. Operating cash flow growth drove the sequential improvement, while capital expenditure remained relatively stable.
- Cash conversion from revenue to free cash flow strengthened sequentially as operating cash flow rose faster than revenue, while capital expenditure declined. Compared to the year-ago quarter, conversion weakened due to lower operating cash flow despite similar capital expenditure.
- Revenue, operating cash flow, and free cash flow were higher than the preceding quarter, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$309.0M
Capital spending and related asset purchases.
FCF margin
66.1%
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 | $8.6B | $3.6B | $267.0M | $3.3B | 38.8% |
| 2024-03-31 | $8.8B | $4.5B | $281.0M | $4.3B | 48.5% |
| 2024-06-30 | $8.9B | $5.1B | $400.0M | $4.7B | 53.2% |
| 2024-09-30 | $9.6B | $6.7B | $309.0M | $6.4B | 66.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash flow growth
The strongest observable driver in the current quarter was the increase in operating cash flow compared to the prior quarter, which outpaced revenue growth and enabled free cash flow to rise despite lower capital expenditure.
This driver lifted free cash flow and margin above the preceding quarter's levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow strengthened sequentially as operating cash flow rose faster than revenue, while capital expenditure declined. Compared to the year-ago quarter, conversion weakened due to lower operating cash flow despite similar capital expenditure.
Revenue, operating cash flow, and free cash flow were higher than the preceding quarter, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened margin.
Monitor free cash flow margin relative to the year-ago quarter to assess whether the current conversion level stabilizes or continues to decline.