Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the year-ago quarter, yet free cash flow improved sequentially. The free cash flow margin strengthened compared to the previous quarter but weakened relative to the same quarter last year.
- Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in a higher free cash flow. The free cash flow margin improved sequentially, though it remains below the level of a year ago.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved, while revenue was lower. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$976.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$252.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $10.0B | $2.5B | $457.0M | $2.1B | 20.6% |
| 2023-12-31 | $10.3B | $3.6B | $268.0M | $3.3B | 32.2% |
| 2024-03-31 | $10.0B | $585.0M | $195.0M | $390.0M | 3.9% |
| 2024-06-30 | $9.7B | $1.2B | $252.0M | $976.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.3B | 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 Improvement
Operating cash flow was higher than the prior quarter, while capital expenditure also increased. The net effect was a higher free cash flow and an improved free cash flow margin.
The increase in operating cash flow was the primary factor behind the sequential free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in a higher free cash flow. The free cash flow margin improved sequentially, though it remains below the level of a year ago.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved, while revenue was lower. Relative to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow as revenue continues to decline, to assess whether the improved cash conversion persists.