Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter generated strong free cash flow with a positive margin, contrasting with the prior quarter's negative free cash flow. Operating cash flow and free cash flow were both higher than the same quarter one year earlier, despite a lower revenue figure.
- The company converted a substantial portion of its revenue into operating cash flow, and with reduced capital expenditure, the free cash flow margin was positive and strong.
- Relative to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital spending. Versus the same quarter last year, free cash flow increased even though revenue was positive in the current quarter compared to a negative figure in the year-ago period, reflecting better cash generation efficiency.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$123.4M
Capital spending and related asset purchases.
FCF margin
22.8%
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 |
|---|---|---|---|---|---|
| 2023-04-29 | $3.9B | $752.0M | $350.4M | $401.6M | 10.2% |
| 2023-07-29 | $10.7B | $171.8M | $425.4M | -$253.6M | -2.4% |
| 2023-10-28 | $7.3B | $505.8M | $541.4M | -$35.6M | -0.5% |
| 2024-02-03 | $5.0B | $1.3B | $123.4M | $1.1B | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -66.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Recovery
The free cash flow margin turned positive from negative in the prior quarter, as operating cash flow increased and capital expenditure declined.
This indicates a significant improvement in cash generation efficiency relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a substantial portion of its revenue into operating cash flow, and with reduced capital expenditure, the free cash flow margin was positive and strong.
Relative to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital spending. Versus the same quarter last year, free cash flow increased even though revenue was positive in the current quarter compared to a negative figure in the year-ago period, reflecting better cash generation efficiency.
The company's capital expenditure for store openings, renovations, and distribution network expansion remains a key item to monitor.