Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined compared to both the prior quarter and the same quarter last year, driven by a reduction in operating cash flow. The free cash flow margin weakened accordingly.
- Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased significantly, while capital expenditure also declined but not enough to offset the drop, resulting in lower free cash flow and a narrower margin. The filing notes that the company has historically generated significant cash from operations and funded working capital needs through operating cash flows.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year earlier, all metrics were substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$632.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$847.0M
Cash generated by operations before capital spending.
CapEx
$215.0M
Capital spending and related asset purchases.
FCF margin
6.6%
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 | $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% |
| 2024-09-30 | $9.6B | $847.0M | $215.0M | $632.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 468.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$36.9B | 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 decline
Operating cash flow decreased from the prior quarter and from the same quarter last year, leading to a lower free cash flow.
The reduction in operating cash flow was the primary factor behind the weaker free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow decreased significantly, while capital expenditure also declined but not enough to offset the drop, resulting in lower free cash flow and a narrower margin. The filing notes that the company has historically generated significant cash from operations and funded working capital needs through operating cash flows.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter one year earlier, all metrics were substantially lower.
Monitor the trend in operating cash flow relative to revenue, as it has declined sharply.