Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened this quarter as revenue growth and higher operating cash flow drove an increase in free cash flow and margin. Both sequentially and year-over-year, free cash flow generation improved.
- Revenue increased, and operating cash flow grew at a faster pace, while capital expenditure declined, leading to a higher free cash flow margin.
- Compared to the prior quarter, all metrics improved: operating cash flow and free cash flow rose while capital expenditure was lower. Year-over-year, revenue, operating cash flow, and free cash flow all increased, and the margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.1B
Cash generated by operations before capital spending.
CapEx
$100.0M
Capital spending and related asset purchases.
FCF margin
40.3%
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 |
|---|---|---|---|---|---|
| 2024-05-05 | $12.5B | $4.6B | $132.0M | $4.4B | 35.6% |
| 2024-08-04 | $13.1B | $5.0B | $172.0M | $4.8B | 36.7% |
| 2024-11-03 | $14.1B | $5.6B | $122.0M | $5.5B | 39.0% |
| 2025-02-02 | $14.9B | $6.1B | $100.0M | $6.0B | 40.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 and cash flow expansion
Operating cash flow grew alongside revenue, with capital expenditure declining, boosting free cash flow and margin.
This combination drove the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, while capital expenditure declined, leading to a higher free cash flow margin.
Compared to the prior quarter, all metrics improved: operating cash flow and free cash flow rose while capital expenditure was lower. Year-over-year, revenue, operating cash flow, and free cash flow all increased, and the margin was higher.
Monitor the change in trade accounts receivable, which increased from the prior quarter end as shown in the balance sheet.