Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter ended November 24, 2024 was lower than the same quarter last year, while revenue was higher. The free cash flow margin weakened compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than the previous quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, contributing to a lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2023-11-26 | $57.8B | $4.7B | $1.0B | $3.6B | 6.2% |
| 2024-02-18 | $58.4B | $731.0M | $1.0B | -$300.0M | -0.5% |
| 2024-05-12 | $58.5B | $3.0B | $1.1B | $1.9B | 3.3% |
| 2024-11-24 | $62.2B | $3.3B | $1.3B | $2.0B | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $5.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which reduced free cash flow despite higher revenue and operating cash flow compared to the prior quarter.
The higher capital expenditure has weakened free cash flow margin relative to both comparison periods.
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 previous quarter but lower than the year-ago quarter. Capital expenditure increased relative to both comparison periods, contributing to a lower free cash flow margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending has reduced free cash flow conversion.