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 increased compared to the prior quarter, while free cash flow margin improved slightly. Versus the same quarter last year, revenue was higher but free cash flow margin was lower, as operating cash flow was similar and capital expenditure rose.
- Operating cash flow was higher sequentially but flat year-over-year, while capital expenditure increased both sequentially and year-over-year. The resulting free cash flow was higher than the prior quarter but lower than the same quarter last year, and the free cash flow margin improved sequentially but weakened year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with a slight improvement in free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.0B
Cash generated by operations before capital spending.
CapEx
$172.0M
Capital spending and related asset purchases.
FCF margin
36.7%
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 | $9.3B | $4.8B | $105.0M | $4.7B | 50.8% |
| 2024-02-04 | $12.0B | $4.8B | $122.0M | $4.7B | 39.2% |
| 2024-05-05 | $12.5B | $4.6B | $132.0M | $4.4B | 35.6% |
| 2024-08-04 | $13.1B | $5.0B | $172.0M | $4.8B | 36.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -255.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Higher Revenue Driving Cash Generation
Revenue was higher both sequentially and year-over-year, with operating cash flow increasing sequentially. The sequential improvement in free cash flow aligns with the revenue growth.
Sequential free cash flow growth was supported by higher cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher sequentially but flat year-over-year, while capital expenditure increased both sequentially and year-over-year. The resulting free cash flow was higher than the prior quarter but lower than the same quarter last year, and the free cash flow margin improved sequentially but weakened year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with a slight improvement in free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow was lower, resulting in a lower free cash flow margin.
Monitor capital expenditure levels relative to operating cash flow, as higher spending contributed to a year-over-year decline in free cash flow despite stable cash from operations.