Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by higher revenue and operating cash flow. Capital expenditure was lower than the prior quarter, contributing to the improvement.
- Revenue and operating cash flow both increased, while capital expenditure decreased relative to the prior quarter, resulting in a positive free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, and the margin strengthened. Versus the same quarter last year, free cash flow and margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$720.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-05-31 | $5.8B | $2.0B | $1.3B | $720.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 782.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.5B | 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, providing the primary support for the positive free cash flow.
The increase in operating cash flow was the strongest observable factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure decreased relative to the prior quarter, resulting in a positive free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow improved from negative to positive, and the margin strengthened. Versus the same quarter last year, free cash flow and margin were both higher.
Monitor whether capital expenditure remains at a level that sustains positive free cash flow in future quarters.