Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased, yet cash conversion weakened sharply versus the prior quarter, with both operating cash flow and free cash flow declining. Compared to the same quarter last year, revenue was higher and free cash flow improved due to a rise in operating cash flow.
- Operating cash flow and free cash flow were lower relative to revenue, resulting in a free cash flow margin that was lower than the prior quarter but higher than a year ago.
- Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow, however, were lower than the prior quarter but improved relative to the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$870.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$152.2M
Capital spending and related asset purchases.
FCF margin
4.9%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $15.8B | $2.1B | $109.8M | $2.0B | 12.6% |
| 2024-05-31 | $16.5B | $3.1B | $124.1M | $3.0B | 18.3% |
| 2024-08-31 | $16.4B | $3.4B | $213.6M | $3.2B | 19.4% |
| 2024-11-30 | $17.7B | $1.0B | $152.2M | $870.3M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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.
Operating cash flow improvement year over year
Compared to the same quarter last year, operating cash flow was higher, which the filing attributes primarily to higher net income and changes in operating assets and liabilities.
This contributed to a stronger free cash flow compared to the prior year quarter, despite a lower margin than the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were lower relative to revenue, resulting in a free cash flow margin that was lower than the prior quarter but higher than a year ago.
Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow, however, were lower than the prior quarter but improved relative to the year-ago period.
Monitor whether the increase in operating cash flow from the year-ago level can persist as revenue continues to grow.