Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter, but operating cash flow and free cash flow increased significantly, resulting in a much higher free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened.
- Revenue was slightly lower than the prior quarter, but operating cash flow improved markedly, while capital expenditure was nearly unchanged. This drove free cash flow higher and the free cash flow margin improved substantially.
- Compared with the prior quarter, operating cash flow and free cash flow were much higher, and the margin improved. Compared with the same quarter one year earlier, all metrics were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$168.0M
Capital spending and related asset purchases.
FCF margin
29.9%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $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% |
| 2024-04-27 | $12.7B | $4.0B | $168.0M | $3.8B | 29.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 201.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | 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 improvement
Operating cash flow was significantly higher than the prior quarter, while capital expenditure remained stable. This was the primary factor behind the increase in free cash flow and the improvement in free cash flow margin.
The free cash flow margin improved compared to the prior quarter, reversing the decline seen in the previous period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow improved markedly, while capital expenditure was nearly unchanged. This drove free cash flow higher and the free cash flow margin improved substantially.
Compared with the prior quarter, operating cash flow and free cash flow were much higher, and the margin improved. Compared with the same quarter one year earlier, all metrics were lower, and the margin weakened.
Monitor the trajectory of remaining performance obligations, which were higher than at the end of the prior fiscal year, and inventories, which were lower, as noted in the filing.