Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin turned positive from a negative position a year ago.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin relative to revenue, indicating efficient cash conversion after investment.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$548.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$997.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$837.0M
Capital spending and related asset purchases.
FCF margin
14.5%
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 |
|---|---|---|---|---|---|
| 2022-11-30 | $3.8B | -$117.0M | $1.2B | -$1.3B | -33.8% |
| 2023-02-28 | $4.4B | $388.0M | $1.1B | -$687.0M | -15.5% |
| 2023-05-31 | $4.9B | $1.1B | $697.0M | $440.0M | 9.0% |
| 2023-08-31 | $6.9B | $1.8B | $837.0M | $997.0M | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.3B | 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 was higher than both the prior quarter and the same quarter last year, supporting the improvement in free cash flow. This was the strongest observable driver of the quarter's cash conversion.
Higher operating cash flow directly contributed to the positive free cash flow and improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin relative to revenue, indicating efficient cash conversion after investment.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow turning from negative to positive.
Monitor capital expenditure relative to operating cash flow, as it increased from both the prior quarter and the year-ago quarter.