Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved sequentially, while free cash flow margin strengthened. Compared to the same quarter last year, revenue and cash generation were lower, though the free cash flow margin was higher.
- Operating cash flow as a proportion of revenue improved relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin despite lower absolute revenue.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were lower, but the free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$701.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$855.0M
Cash generated by operations before capital spending.
CapEx
$153.9M
Capital spending and related asset purchases.
FCF margin
30.3%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $2.7B | $1.2B | $476.4M | $710.9M | 26.2% |
| 2024-02-03 | $2.5B | $1.1B | $223.0M | $915.9M | 36.4% |
| 2024-05-04 | $2.2B | $807.9M | $188.2M | $619.7M | 28.7% |
| 2024-08-03 | $2.3B | $855.0M | $153.9M | $701.1M | 30.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 efficiency
Operating cash flow improved sequentially despite a modest revenue increase, and the operating cash flow margin rose relative to both comparison periods. This efficiency gain was the strongest observable driver of the free cash flow margin expansion.
Higher operating cash flow relative to revenue enabled free cash flow to grow sequentially even as capital expenditure declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin despite lower absolute revenue.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were lower, but the free cash flow margin was higher.
Monitor the trajectory of capital expenditure, which declined sequentially and year-over-year, as it directly influences free cash flow levels.