Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow improved sequentially as operating cash flow increased despite lower revenue, resulting in a higher margin. The filing indicates that operating cash flows remain the primary liquidity source, influenced by market conditions.
- Revenue was lower than the prior quarter, but operating cash flow was higher, leading to higher free cash flow. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and free cash flow was lower.
- Compared to the immediately preceding quarter, the free cash flow margin improved. Compared to the same quarter one year earlier, the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$914.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$639.0M
Capital spending and related asset purchases.
FCF margin
3.8%
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 |
|---|---|---|---|---|---|
| 2024-02-02 | $22.3B | $1.5B | $727.0M | $806.0M | 3.6% |
| 2024-05-03 | $22.2B | $1.0B | $596.0M | $447.0M | 2.0% |
| 2024-08-02 | $25.0B | $1.3B | $682.0M | $658.0M | 2.6% |
| 2024-11-01 | $24.4B | $1.6B | $639.0M | $914.0M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.8B | 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 from the prior quarter, which was the primary factor behind the higher free cash flow. However, the year-over-year comparison shows a decline, indicating that the improvement may not be fully recovered.
The sequential rise in operating cash flow drove the margin expansion, but the year-over-year decline remains a point to observe.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow was higher, leading to higher free cash flow. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and free cash flow was lower.
Compared to the immediately preceding quarter, the free cash flow margin improved. Compared to the same quarter one year earlier, the margin weakened.
Monitor the sustainability of the sequential improvement in operating cash flow, given the decline from the year-ago quarter.