Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sharply from the prior quarter and year-ago quarter, yet free cash flow essentially matched the prior quarter's level because the free cash flow margin contracted. Operating cash flow held steady sequentially despite higher revenue, while capital expenditure increased modestly.
- Operating cash flow remained unchanged from the prior quarter but rose year-over-year, as capital expenditure stepped up slightly. The conversion of revenue into free cash flow weakened sequentially, as free cash flow was flat on much higher revenue.
- Compared with the prior quarter, revenue grew substantially while free cash flow was unchanged, causing the free cash flow margin to decline. Versus the same quarter one year earlier, both revenue and free cash flow improved, but the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
39.2%
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 | $8.7B | $4.5B | $122.0M | $4.4B | 50.2% |
| 2023-07-30 | $8.9B | $4.7B | $122.0M | $4.6B | 51.8% |
| 2023-10-29 | $9.3B | $4.8B | $105.0M | $4.7B | 50.8% |
| 2024-02-04 | $12.0B | $4.8B | $122.0M | $4.7B | 39.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 354.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Revenue growth with stable cash conversion
Revenue increased sharply from both comparison periods, but operating cash flow did not keep pace, suggesting that cash conversion efficiency is under watch. The filing notes no explicit cause for the divergence.
If cash conversion does not follow revenue growth, free cash flow margin may remain compressed even with higher sales.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained unchanged from the prior quarter but rose year-over-year, as capital expenditure stepped up slightly. The conversion of revenue into free cash flow weakened sequentially, as free cash flow was flat on much higher revenue.
Compared with the prior quarter, revenue grew substantially while free cash flow was unchanged, causing the free cash flow margin to decline. Versus the same quarter one year earlier, both revenue and free cash flow improved, but the margin was slightly lower.
Monitor whether the unchanged operating cash flow signals a temporary lag in collections or a shift in cash conversion cycle ahead of expected divestiture proceeds.