Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened to a level above the prior comparisons.
- Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased substantially compared to both periods, while capital expenditure was lower, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow was higher and the margin improved. Versus the same quarter one year earlier, free cash flow was also higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$691.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$490.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$949.8M
Cash generated by operations before capital spending.
CapEx
$459.7M
Capital spending and related asset purchases.
FCF margin
5.0%
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 | $9.3B | $191.1M | $363.1M | -$172.0M | -1.8% |
| 2023-08-04 | $9.8B | $535.6M | $404.8M | $130.8M | 1.3% |
| 2023-11-03 | $9.7B | $715.3M | $472.6M | $242.7M | 2.5% |
| 2024-02-02 | $9.9B | $949.8M | $459.7M | $490.1M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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 Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter, while capital expenditure declined modestly.
This combination directly lifted free cash flow and the free cash flow margin to levels well above the comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased substantially compared to both periods, while capital expenditure was lower, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow was higher and the margin improved. Versus the same quarter one year earlier, free cash flow was also higher and the margin strengthened.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.