Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter a year earlier. Operating cash flow and free cash flow improved, with the free cash flow margin rising to a higher level.
- Operating cash flow grew more than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than in both comparison periods, which further supported free cash flow.
- Compared with the prior quarter, revenue was higher and operating cash flow was substantially higher, resulting in a much improved free cash flow margin. Versus the same quarter a year ago, all metrics were higher except capital expenditure, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
35.1%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $8.2B | $4.5B | $243.0M | $4.2B | 51.5% |
| 2023-07-31 | $8.6B | $808.0M | $180.0M | $628.0M | 7.3% |
| 2023-10-31 | $8.7B | $1.5B | $166.0M | $1.4B | 15.7% |
| 2024-01-31 | $9.3B | $3.4B | $147.0M | $3.3B | 35.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$954.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow was the primary driver of the free cash flow improvement. It rose significantly versus both the prior quarter and the same quarter a year ago, outpacing the revenue increase.
The higher operating cash flow directly boosted the free cash flow margin, which reached a level above the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew more than revenue, leading to a higher free cash flow margin. Capital expenditure was lower than in both comparison periods, which further supported free cash flow.
Compared with the prior quarter, revenue was higher and operating cash flow was substantially higher, resulting in a much improved free cash flow margin. Versus the same quarter a year ago, all metrics were higher except capital expenditure, which was lower.
Monitor capital expenditure levels, which declined both sequentially and year-over-year, as a sustained reduction could affect future capacity.