Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially and year-over-year, driven by lower capital expenditure. Revenue was stable compared to the prior quarter but slightly lower than a year ago, while operating cash flow declined year-over-year.
- Cash conversion from revenue strengthened compared to both the preceding quarter and the same quarter last year, as the increase in free cash flow margin outpaced the change in revenue. Operating cash flow was lower year-over-year, but the reduction in capital expenditure more than offset that decline.
- Relative to the prior quarter, free cash flow and margin improved despite similar revenue. Versus the same quarter a year ago, free cash flow and margin also improved, supported by a larger decrease in capital expenditure relative to the drop in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$500.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$818.0M
Capital spending and related asset purchases.
FCF margin
2.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-08-31 | $21.6B | $1.2B | $767.0M | $420.0M | 1.9% |
| 2024-11-30 | $22.0B | $1.3B | $818.0M | $500.0M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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.
Capital expenditure reduction
Capital expenditure fell substantially compared to the same quarter last year, which directly supported free cash flow and margin even as operating cash flow declined.
If capital expenditure remains at this lower level, free cash flow generation could continue to benefit, though sustainability depends on future operating cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue strengthened compared to both the preceding quarter and the same quarter last year, as the increase in free cash flow margin outpaced the change in revenue. Operating cash flow was lower year-over-year, but the reduction in capital expenditure more than offset that decline.
Relative to the prior quarter, free cash flow and margin improved despite similar revenue. Versus the same quarter a year ago, free cash flow and margin also improved, supported by a larger decrease in capital expenditure relative to the drop in operating cash flow.
Monitor operating cash flow trends, as its year-over-year decline was the main offsetting factor to the improvement in free cash flow.