Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose versus the same quarter last year. Free cash flow margin weakened sequentially but improved year-over-year.
- Operating cash flow was lower than the prior quarter and slightly below the year-ago level, while capital expenditure was relatively stable. The resulting free cash flow and margin both decreased sequentially but increased compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and free cash flow were higher, while operating cash flow was slightly lower and free cash flow margin improved.
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
$319.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$911.0M
Cash generated by operations before capital spending.
CapEx
$592.0M
Capital spending and related asset purchases.
FCF margin
5.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-08-31 | $7.9B | $1.2B | $577.0M | $628.0M | 8.0% |
| 2024-11-30 | $5.9B | $911.0M | $592.0M | $319.0M | 5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.0B | 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 Weakening
Operating cash flow fell from the prior quarter and was slightly below the year-ago level, while revenue was higher year-over-year. This divergence suggests a shift in cash conversion efficiency.
If operating cash flow continues to lag revenue growth, free cash flow margin may face further pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and slightly below the year-ago level, while capital expenditure was relatively stable. The resulting free cash flow and margin both decreased sequentially but increased compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue and free cash flow were higher, while operating cash flow was slightly lower and free cash flow margin improved.
Monitor the trajectory of operating cash flow relative to revenue, as it declined sequentially despite a smaller revenue drop.