Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow declined from the prior quarter but improved year-over-year due to higher capital spending.
- The free cash flow margin narrowed from the previous quarter as capital expenditure rose, but was slightly above the year-ago margin.
- Sequentially, free cash flow decreased on higher capital spending despite increased operating cash flow. Year-over-year, free cash flow improved as revenue and operating cash flow growth outpaced a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$396.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
6.7%
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 | $5.2B | $1.4B | $668.0M | $699.0M | 13.5% |
| 2024-06-30 | $5.4B | $1.2B | $667.0M | $487.0M | 9.0% |
| 2024-09-30 | $5.6B | $1.4B | $781.0M | $577.0M | 10.3% |
| 2024-12-31 | $5.9B | $1.5B | $1.1B | $396.0M | 6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose substantially from the prior quarter, outpacing operating cash flow growth and compressing free cash flow.
Higher capital spending reduced free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin narrowed from the previous quarter as capital expenditure rose, but was slightly above the year-ago margin.
Sequentially, free cash flow decreased on higher capital spending despite increased operating cash flow. Year-over-year, free cash flow improved as revenue and operating cash flow growth outpaced a modest increase in capital expenditure.
Monitor capital expenditure levels, as a significant increase this quarter weighed on free cash flow conversion.