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 improved compared to both the prior quarter and the same quarter last year. The free cash flow margin was stable versus the prior quarter and significantly higher than a year ago.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that remained steady sequentially and improved year over year. Capital expenditure increased from both comparison periods, yet free cash flow still grew.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while the free cash flow margin was unchanged. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$407.0M
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-10-27 | $7.0B | $2.6B | $407.0M | $2.2B | 30.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.9B | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow. This improvement occurred even as capital expenditure rose from both comparison periods.
The stronger operating cash flow drove free cash flow higher and supported a stable sequential 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 proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that remained steady sequentially and improved year over year. Capital expenditure increased from both comparison periods, yet free cash flow still grew.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while the free cash flow margin was unchanged. Versus the same quarter one year earlier, all metrics were higher, with the free cash flow margin showing a notable improvement.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, as its trajectory may affect future free cash flow conversion.