Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly as operating cash flow rose while capital expenditure was lower, leading to a much higher free cash flow and margin. Compared to both the prior quarter and the same quarter last year, free cash flow and margin strengthened notably.
- Revenue increased modestly, while operating cash flow grew at a faster pace, and capital expenditure was lower than a year ago. This combination drove free cash flow and free cash flow margin higher, reflecting improved cash conversion efficiency.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and a slightly higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin improved substantially, as operating cash flow increased and capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$635.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$988.9M
Cash generated by operations before capital spending.
CapEx
$353.7M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2023-11-03 | $9.7B | $715.3M | $472.6M | $242.7M | 2.5% |
| 2024-02-02 | $9.9B | $949.8M | $459.7M | $490.1M | 5.0% |
| 2024-05-03 | $9.9B | $663.8M | $342.0M | $321.8M | 3.2% |
| 2024-08-02 | $10.2B | $988.9M | $353.7M | $635.2M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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.
Stronger Operating Cash Flow
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the largest contribution to the increase in free cash flow. This improvement occurred even as revenue grew only modestly.
The stronger operating cash flow directly lifted free cash flow and margin, marking a positive shift in cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased modestly, while operating cash flow grew at a faster pace, and capital expenditure was lower than a year ago. This combination drove free cash flow and free cash flow margin higher, reflecting improved cash conversion efficiency.
Compared to the immediately preceding quarter, free cash flow and margin were higher, supported by stronger operating cash flow and a slightly higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin improved substantially, as operating cash flow increased and capital expenditure decreased.
Monitor whether operating cash flow can sustain its current level, as it was the primary driver of the quarter's cash conversion improvement.