Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly despite lower revenue. Operating cash flow increased from both the prior quarter and the same quarter last year.
- Free cash flow margin rose as operating cash flow grew relative to reduced revenue, while capital expenditure remained relatively stable.
- Revenue decreased from the previous quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin all improved sequentially and year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$324.0M
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 2023-10-29 | $15.4B | $5.7B | $611.0M | $5.1B | 33.0% |
| 2024-01-28 | $12.2B | -$908.0M | $362.0M | -$1.3B | -10.4% |
| 2024-04-28 | $15.2B | $1.9B | $357.0M | $1.5B | 9.8% |
| 2024-07-28 | $13.2B | $3.2B | $324.0M | $2.9B | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Operating Cash Flow Improvement
Operating cash flow increased compared to the prior quarter and the same quarter last year, despite lower revenue. This was the primary factor behind the higher free cash flow and margin.
Strong operating cash flow drove the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin rose as operating cash flow grew relative to reduced revenue, while capital expenditure remained relatively stable.
Revenue decreased from the previous quarter and the year-ago quarter. Operating cash flow, free cash flow, and free cash flow margin all improved sequentially and year-over-year.
Monitor revenue trends as they declined from both comparison periods.