Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Compared to the prior quarter, revenue held steady while operating cash flow and free cash flow decreased, resulting in a lower free cash flow margin. Relative to the same quarter last year, all metrics improved, with free cash flow margin expanding notably.
- Operating cash flow as a proportion of revenue was lower than the previous quarter but higher than a year ago. Capital expenditure rose from both prior periods, yet free cash flow margin remained in a healthy range.
- Revenue was slightly lower than the prior quarter and higher than the year-ago quarter. Operating cash flow and free cash flow were both lower sequentially but substantially higher year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.4B
Cash generated by operations before capital spending.
CapEx
$345.0M
Capital spending and related asset purchases.
FCF margin
53.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $9.5B | $5.4B | $345.0M | $5.1B | 53.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow decline
Revenue was essentially unchanged from the prior quarter, but operating cash flow decreased by an amount larger than the increase in capital expenditure, leading to a lower free cash flow.
The free cash flow margin weakened compared to the immediately preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the previous quarter but higher than a year ago. Capital expenditure rose from both prior periods, yet free cash flow margin remained in a healthy range.
Revenue was slightly lower than the prior quarter and higher than the year-ago quarter. Operating cash flow and free cash flow were both lower sequentially but substantially higher year over year.
Track operating cash flow relative to revenue in the upcoming quarter.