Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow margin improved compared to the prior quarter and remained stable relative to the same quarter last year. Revenue, operating cash flow, and free cash flow all increased sequentially and were also higher year on year.
- Operating cash flow exceeded capital expenditure, generating solid free cash flow. The cash conversion was supported by working capital movements, as noted in the filing.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter one year earlier, these metrics were slightly higher or stable, while margin remained essentially consistent.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$989.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$160.9M
Capital spending and related asset purchases.
FCF margin
18.9%
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 |
|---|---|---|---|---|---|
| 2024-02-25 | $5.1B | $943.1M | $191.7M | $751.4M | 14.7% |
| 2024-05-26 | $4.7B | $863.7M | $288.5M | $575.2M | 12.2% |
| 2024-08-25 | $4.8B | $624.2M | $140.3M | $483.9M | 10.0% |
| 2024-11-24 | $5.2B | $1.2B | $160.9M | $989.6M | 18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Working Capital Management
The increase in operating cash flow was supported by favorable changes in working capital, particularly the timing of accounts payable, partially offset by higher inventory levels and changes in prepaid expenses.
Efficient working capital management contributed to free cash flow growth in the quarter.
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 solid free cash flow. The cash conversion was supported by working capital movements, as noted in the filing.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter one year earlier, these metrics were slightly higher or stable, while margin remained essentially consistent.
Monitor the timing of accounts payable and inventory levels, as these were significant factors in operating cash flow changes within the period.