Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow in the current quarter, as operating cash flow was negative despite positive revenue. The margin was also negative, reflecting a cash conversion shortfall.
- Revenue was positive but operating cash flow was negative, resulting in negative free cash flow and a negative margin, indicating that cash conversion from revenue was unfavorable.
- Compared with the preceding quarter, revenue was lower, and operating cash flow and free cash flow both turned from positive to negative, weakening the margin. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were less negative, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$908.0M
Cash generated by operations before capital spending.
CapEx
$362.0M
Capital spending and related asset purchases.
FCF margin
-10.4%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $17.4B | $1.1B | $269.0M | $830.0M | 4.8% |
| 2023-07-30 | $15.8B | $3.0B | $303.0M | $2.7B | 17.3% |
| 2023-10-29 | $15.4B | $5.7B | $611.0M | $5.1B | 33.0% |
| 2024-01-28 | $12.2B | -$908.0M | $362.0M | -$1.3B | -10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -72.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Operating Cash Flow
The negative operating cash flow was the strongest observable factor driving the negative free cash flow and margin, despite positive revenue.
It directly caused free cash flow to be negative, reversing the positive position seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive but operating cash flow was negative, resulting in negative free cash flow and a negative margin, indicating that cash conversion from revenue was unfavorable.
Compared with the preceding quarter, revenue was lower, and operating cash flow and free cash flow both turned from positive to negative, weakening the margin. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were less negative, and the margin improved.
Monitor the trajectory of operating cash flow, as the filing notes that the company’s equipment operations and financial services have different cash flow generation patterns.