Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved substantially from the prior quarter, while free cash flow margin rose sharply. Compared with the same quarter a year earlier, revenue and cash generation were lower, and the margin narrowed.
- Revenue was supported by operating cash flow that was materially higher than capital expenditure, resulting in a free cash flow that represented a significant portion of revenue. The free cash flow margin reflected a strong conversion of revenue into cash after capital spending.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$286.0M
Capital spending and related asset purchases.
FCF margin
24.2%
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 | $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% |
| 2024-12-31 | $10.0B | $2.7B | $286.0M | $2.4B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -491.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$34.2B | 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 Improvement
Operating cash flow rose sharply from the prior quarter, far outpacing the increase in capital expenditure. This was the principal factor behind the substantial rise in free cash flow and margin.
The higher operating cash flow directly strengthened free cash flow and the cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was supported by operating cash flow that was materially higher than capital expenditure, resulting in a free cash flow that represented a significant portion of revenue. The free cash flow margin reflected a strong conversion of revenue into cash after capital spending.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were lower, and the margin weakened.
Monitor changes in capital expenditure relative to operating cash flow, as it influences the free cash flow margin.