Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive year over year, though it weakened sequentially. Revenue growth and disciplined capital spending partly offset the decline in operating cash flow.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow, but the margin narrowed sequentially, indicating that revenue growth did not fully convert into cash.
- Compared with the prior quarter, free cash flow and margin declined, as operating cash flow fell while capital spending was stable. Versus the same quarter a year ago, all metrics improved: free cash flow turned from negative to positive, capital expenditure reduced, and operating cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$469.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
2.1%
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 |
|---|---|---|---|---|---|
| 2023-02-28 | $22.2B | $2.3B | $1.3B | $998.0M | 4.5% |
| 2023-05-31 | $21.9B | $3.4B | $1.8B | $1.7B | 7.7% |
| 2023-08-31 | $21.7B | $2.2B | $1.3B | $940.0M | 4.3% |
| 2023-11-30 | $22.2B | $1.8B | $1.3B | $469.0M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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.
Free Cash Flow Turns Positive Year Over Year
Compared with the same quarter last year, free cash flow moved from a deficit to a surplus, driven by higher operating cash flow and lower capital expenditure.
This shift strengthens the company's cash position and reduces reliance on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow, but the margin narrowed sequentially, indicating that revenue growth did not fully convert into cash.
Compared with the prior quarter, free cash flow and margin declined, as operating cash flow fell while capital spending was stable. Versus the same quarter a year ago, all metrics improved: free cash flow turned from negative to positive, capital expenditure reduced, and operating cash flow increased.
Monitor whether operating cash flow can recover to support free cash flow at the current capital expenditure level.