Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the preceding quarter but lower than the same quarter a year earlier. Operating cash flow and free cash flow declined, resulting in a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the decline in free cash flow and its margin was driven by the lower operating cash flow.
- Compared to the preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were lower. Compared to the same quarter a year earlier, all metrics were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$806.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$727.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2023-05-05 | $20.9B | $1.8B | $701.0M | $1.1B | 5.1% |
| 2023-08-04 | $22.9B | $3.2B | $624.0M | $2.6B | 11.3% |
| 2023-11-03 | $22.3B | $2.2B | $704.0M | $1.4B | 6.5% |
| 2024-02-02 | $22.3B | $1.5B | $727.0M | $806.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in operating cash flow efficiency
Operating cash flow decreased relative to revenue, leading to a lower free cash flow margin.
This weakened cash conversion and reduced the cushion for capital expenditure and other cash needs.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the decline in free cash flow and its margin was driven by the lower operating cash flow.
Compared to the preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were lower. Compared to the same quarter a year earlier, all metrics were lower.
Operating cash flow generation, identified in the filing as the primary liquidity source and influenced by demand trends, is a key metric to monitor.