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. Operating cash flow and free cash flow were lower than both comparison periods, resulting in a weakened free cash flow margin.
- Revenue was essentially unchanged, but operating cash flow declined sharply, indicating a lower conversion of revenue into cash. Capital expenditure was slightly higher than the prior quarter, further reducing free cash flow.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while revenue was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$257.0M
Capital spending and related asset purchases.
FCF margin
17.1%
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 |
|---|---|---|---|---|---|
| 2023-07-30 | $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% |
| 2024-04-28 | $6.6B | $1.4B | $257.0M | $1.1B | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite revenue being nearly flat. This was the strongest observable driver of the reduced free cash flow.
The lower operating cash flow directly caused free cash flow and free cash flow margin to weaken compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially unchanged, but operating cash flow declined sharply, indicating a lower conversion of revenue into cash. Capital expenditure was slightly higher than the prior quarter, further reducing free cash flow.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while revenue was similar.
Monitor the trend in operating cash flow relative to revenue, as the current quarter's conversion weakened significantly from both comparison periods.