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, driving a higher free cash flow margin. Compared to the same quarter last year, operating cash flow and free cash flow were lower despite higher revenue.
- Revenue increased while operating cash flow rose more sharply, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than both prior periods, but the increase in operating cash flow more than offset it.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$297.0M
Capital spending and related asset purchases.
FCF margin
30.8%
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 |
|---|---|---|---|---|---|
| 2023-10-29 | $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% |
| 2024-07-28 | $6.8B | $2.4B | $297.0M | $2.1B | 30.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Recovery
Operating cash flow increased substantially from the prior quarter, more than offsetting a modest rise in capital expenditure. This was the strongest observable driver of the improvement in free cash flow and margin.
The sequential improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more sharply, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than both prior periods, but the increase in operating cash flow more than offset it.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.