Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year ago. Free cash flow was negative, improved from the same quarter last year but weakened from the prior quarter.
- Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure increased significantly from the prior quarter. The resulting free cash flow margin was negative, improved from a year ago but lower than the prior quarter.
- Compared to the prior quarter, revenue was stable, operating cash flow improved, but capital expenditure rose sharply, turning free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$370.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$2.1B
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 |
|---|---|---|---|---|---|
| 2023-05-31 | $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% |
| 2024-02-29 | $5.4B | $1.8B | $2.1B | -$370.0M | -6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.5% | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing a stronger base for cash generation.
This improvement partially offset the negative free cash flow caused by elevated capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure increased significantly from the prior quarter. The resulting free cash flow margin was negative, improved from a year ago but lower than the prior quarter.
Compared to the prior quarter, revenue was stable, operating cash flow improved, but capital expenditure rose sharply, turning free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative.
Monitor the level of capital expenditure relative to operating cash flow, as the gap widened significantly this quarter.