Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin were lower sequentially and year over year, while operating cash flow weakened compared to the prior quarter but improved relative to a year ago. Capital expenditure rose from the previous quarter but declined from the same quarter last year.
- Revenue of this quarter was lower than both the previous quarter and the year-ago quarter. Operating cash flow was higher than the prior quarter but lower than the same quarter last year, while free cash flow was higher sequentially and lower year over year. The free cash flow margin, at a higher level than the preceding quarter, was lower than the year-ago period.
- Compared to the immediately preceding quarter, revenue was lower while free cash flow and free cash flow margin improved. Compared to the same quarter one year earlier, all metrics except operating cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.1B
Cash generated by operations before capital spending.
CapEx
$597.0M
Capital spending and related asset purchases.
FCF margin
40.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-10-27 | $11.1B | $5.1B | $597.0M | $4.5B | 40.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 361.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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.
Sequential Free Cash Flow Improvement
Free cash flow improved from the prior quarter even as revenue declined, driven by stronger operating cash flow relative to revenue. The free cash flow margin rose substantially compared to the preceding quarter.
This sequential strengthening in cash conversion may support capital allocation flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of this quarter was lower than both the previous quarter and the year-ago quarter. Operating cash flow was higher than the prior quarter but lower than the same quarter last year, while free cash flow was higher sequentially and lower year over year. The free cash flow margin, at a higher level than the preceding quarter, was lower than the year-ago period.
Compared to the immediately preceding quarter, revenue was lower while free cash flow and free cash flow margin improved. Compared to the same quarter one year earlier, all metrics except operating cash flow were lower.
Monitor the relationship between operating cash flow and revenue, as operating cash flow improved sequentially despite lower revenue.