Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
AutoZone's cash conversion improved sequentially, with revenue, operating cash flow, and free cash flow all increasing, while the free cash flow margin strengthened. Compared to the same quarter last year, free cash flow was slightly lower and the margin weakened, as capital expenditure increased more than operating cash flow.
- Revenue and operating cash flow were higher than both the prior quarter and the year-ago quarter, while capital expenditure also increased. The resulting free cash flow margin improved from the previous quarter but declined relative to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was slightly lower, resulting in a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$423.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$769.0M
Cash generated by operations before capital spending.
CapEx
$345.9M
Capital spending and related asset purchases.
FCF margin
9.5%
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 |
|---|---|---|---|---|---|
| 2024-05-04 | $4.2B | $669.5M | $235.1M | $434.4M | 10.3% |
| 2024-11-23 | $4.3B | $811.8M | $247.0M | $564.8M | 13.2% |
| 2025-02-15 | $4.0B | $583.7M | $292.7M | $291.0M | 7.4% |
| 2025-05-10 | $4.5B | $769.0M | $345.9M | $423.1M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | 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.
Operating cash flow growth
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, supporting the sequential improvement in free cash flow. Higher capital expenditure partially offset the gain compared to the prior year.
The rise in operating cash flow was the primary observable factor behind the sequential improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were higher than both the prior quarter and the year-ago quarter, while capital expenditure also increased. The resulting free cash flow margin improved from the previous quarter but declined relative to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was slightly lower, resulting in a weaker margin.
The filing notes that decreased demand or changes in customer buying patterns could negatively affect cash generation; monitor for any shifts in these factors.