Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow decreased from the prior quarter, lowering the free cash flow margin. Compared to the same quarter one year earlier, all metrics improved, with free cash flow turning positive.
- Operating cash flow decreased while capital expenditure also decreased, but the reduction in operating cash flow was proportionally larger, resulting in a lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Relative to the same quarter one year earlier, all metrics improved, with free cash flow turning positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$997.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$247.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$922.0M
Cash generated by operations before capital spending.
CapEx
$675.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2023-02-28 | $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% |
| 2023-11-30 | $5.4B | $922.0M | $675.0M | $247.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -514.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.9B | 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 decline
Operating cash flow decreased from the prior quarter, which was the main factor behind the reduction in free cash flow. Capital expenditure also decreased but not enough to offset the cash flow decline.
If operating cash flow continues to decline, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased while capital expenditure also decreased, but the reduction in operating cash flow was proportionally larger, resulting in a lower free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Relative to the same quarter one year earlier, all metrics improved, with free cash flow turning positive.
Monitor the trend of operating cash flow relative to capital expenditure, as it determines free cash flow sustainability.