Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly from the preceding quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was slightly lower despite reduced capital spending.
- Revenue was stable versus both prior periods, while operating cash flow strengthened sequentially, leading to a higher free cash flow margin. The conversion from revenue to free cash flow strengthened from the prior quarter but weakened relative to the year-ago period.
- Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow rising and capital spending declining. Versus the year-ago quarter, free cash flow and operating cash flow were lower, while capital expenditure also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
6.8%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $21.7B | $2.2B | $1.3B | $940.0M | 4.3% |
| 2023-11-30 | $22.2B | $1.8B | $1.3B | $469.0M | 2.1% |
| 2024-02-29 | $21.7B | $1.6B | $1.4B | $231.0M | 1.1% |
| 2024-05-31 | $22.1B | $2.7B | $1.2B | $1.5B | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.3B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, lifting free cash flow despite lower capital expenditure. This sequential improvement was the primary factor behind the quarter’s cash conversion strength.
The cash conversion cycle improved sequentially, supporting a stronger free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus both prior periods, while operating cash flow strengthened sequentially, leading to a higher free cash flow margin. The conversion from revenue to free cash flow strengthened from the prior quarter but weakened relative to the year-ago period.
Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow rising and capital spending declining. Versus the year-ago quarter, free cash flow and operating cash flow were lower, while capital expenditure also decreased.
Monitor operating cash flow trends, as sequential improvement drove the quarter’s cash conversion, but the year-over-year decline signals potential volatility.