Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus both the prior quarter and the year-ago quarter. Free cash flow improved sharply from the prior quarter, driven by higher operating cash flow and lower capital expenditure.
- Operating cash flow as a share of revenue was higher than the prior quarter, leading to a stronger free cash flow margin. Capital expenditure was lower than both comparison periods, further supporting cash conversion.
- Compared to the prior quarter, free cash flow and free cash flow margin were both higher, driven by improved operating cash flow and reduced capital expenditure. Versus the year-ago quarter, free cash flow and margin were slightly higher, with operating cash flow stable and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$229.0M
Capital spending and related asset purchases.
FCF margin
31.3%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $6.6B | $2.3B | $255.0M | $2.0B | 30.7% |
| 2023-07-30 | $6.4B | $2.6B | $255.0M | $2.3B | 36.2% |
| 2023-10-29 | $6.7B | $1.6B | $309.0M | $1.2B | 18.5% |
| 2024-01-28 | $6.7B | $2.3B | $229.0M | $2.1B | 31.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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
Operating cash flow increased from the prior quarter while revenue remained unchanged, indicating a stronger conversion of revenue into cash. This was the primary factor behind the higher free cash flow.
The improvement in operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter, leading to a stronger free cash flow margin. Capital expenditure was lower than both comparison periods, further supporting cash conversion.
Compared to the prior quarter, free cash flow and free cash flow margin were both higher, driven by improved operating cash flow and reduced capital expenditure. Versus the year-ago quarter, free cash flow and margin were slightly higher, with operating cash flow stable and capital expenditure lower.
Monitor the trend in capital expenditure, as it was lower in the current quarter compared to both the prior quarter and the year-ago quarter.