Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened significantly from both the prior quarter and the same quarter last year, driven by a sharp decline in operating cash flow. Revenue fell compared to both periods, while capital expenditure remained stable.
- Operating cash flow declined to a small fraction of revenue, resulting in a free cash flow margin that contracted sharply from the previous levels. Capital expenditure stayed consistent with the year-ago figure but was slightly elevated versus the prior quarter.
- Compared to the prior quarter, revenue decreased and operating cash flow dropped, leading to a lower free cash flow and margin. Year-over-year comparisons were similarly weaker across all metrics except capital expenditure, which was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$638.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$808.0M
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
5.0%
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 |
|---|---|---|---|---|---|
| 2023-04-29 | $14.6B | $5.2B | $270.0M | $4.9B | 34.0% |
| 2023-07-29 | $15.2B | $6.0B | $233.0M | $5.7B | 37.7% |
| 2023-10-28 | $14.7B | $2.4B | $134.0M | $2.2B | 15.3% |
| 2024-01-27 | $12.8B | $808.0M | $170.0M | $638.0M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $6.0B | 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 Decline
The steep reduction in operating cash flow from both the prior quarter and year-ago quarter was the primary factor behind the lower free cash flow and margin. Revenue also fell, but the cash flow drop was disproportionately large.
This driver significantly compressed free cash flow and margin, indicating weakened cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined to a small fraction of revenue, resulting in a free cash flow margin that contracted sharply from the previous levels. Capital expenditure stayed consistent with the year-ago figure but was slightly elevated versus the prior quarter.
Compared to the prior quarter, revenue decreased and operating cash flow dropped, leading to a lower free cash flow and margin. Year-over-year comparisons were similarly weaker across all metrics except capital expenditure, which was unchanged.
Monitor whether operating cash flow recovers to its historical relationship with revenue in upcoming quarters.