Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all reached their highest levels in the supplied quarters, while the free cash flow margin improved sharply. The primary cash sources and uses remain consistent with the filing's description of receipts from revenue and expenses such as payroll and stock repurchases.
- Operating cash flow exceeded revenue increase from both the prior quarter and the year-ago quarter, while capital expenditure remained stable relative to revenue. Consequently, free cash flow and free cash flow margin improved substantially compared with both prior periods.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Compared with the same quarter one year earlier, all cited metrics also showed improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
51.2%
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 |
|---|---|---|---|---|---|
| 2024-03-01 | $5.2B | $1.2B | $37.0M | $1.1B | 21.9% |
| 2024-05-31 | $5.3B | $1.9B | $41.0M | $1.9B | 35.8% |
| 2024-08-30 | $5.4B | $2.0B | $57.0M | $2.0B | 36.3% |
| 2024-11-29 | $5.6B | $2.9B | $48.0M | $2.9B | 51.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.5B | 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 Expansion
Operating cash flow rose from the prior quarter and from the year-ago quarter, and the increase outpaced the revenue growth rate. This improvement directly lifted free cash flow and widened the free cash flow margin.
This was the strongest observable contributor to free cash flow improvement in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue increase from both the prior quarter and the year-ago quarter, while capital expenditure remained stable relative to revenue. Consequently, free cash flow and free cash flow margin improved substantially compared with both prior periods.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Compared with the same quarter one year earlier, all cited metrics also showed improvement.
Monitor whether the cash conversion pattern remains stable as revenue changes, particularly the relationship between operating cash flow and revenue.