Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was broadly stable compared with the same quarter last year and improved from the preceding quarter. Operating cash flow and free cash flow were lower than the prior-year quarter but significantly higher than the immediately preceding period.
- Operating cash flow as a share of revenue was higher than the previous quarter, indicating improved conversion. Capital expenditure was lower than both comparison periods, supporting a positive free cash flow margin after a negative margin in the prior quarter.
- Relative to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Compared with the same quarter last year, revenue was slightly lower, while operating cash flow and free cash flow declined substantially, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$675.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$997.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
6.8%
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 |
|---|---|---|---|---|---|
| 2023-04-29 | $9.5B | -$331.0M | $204.0M | -$535.0M | -5.7% |
| 2023-07-29 | $9.6B | $512.0M | $191.0M | $321.0M | 3.3% |
| 2023-10-28 | $9.8B | $109.0M | $217.0M | -$108.0M | -1.1% |
| 2024-02-03 | $14.6B | $1.2B | $183.0M | $997.0M | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $282.0M | 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 recovery
Operating cash flow improved sharply from the previous quarter’s low level, driving free cash flow into positive territory. The company’s filing notes that it closely manages liquidity and can adjust capital expenditures in response to changes in the operating environment.
This sequential improvement in cash generation restored free cash flow margin to a positive reading after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the previous quarter, indicating improved conversion. Capital expenditure was lower than both comparison periods, supporting a positive free cash flow margin after a negative margin in the prior quarter.
Relative to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Compared with the same quarter last year, revenue was slightly lower, while operating cash flow and free cash flow declined substantially, resulting in a weakened margin.
Monitor the trajectory of operating cash flow generation, as it declined materially from the prior-year level despite stable revenue.