Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter one year earlier, while operating cash flow and free cash flow increased. The free cash flow margin improved compared to both periods.
- Operating cash flow rose despite lower revenue, and capital expenditure was higher than the prior quarter but lower than a year ago. The resulting free cash flow and free cash flow margin both improved, indicating stronger cash conversion.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, revenue was lower while operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$858.0M
Capital spending and related asset purchases.
FCF margin
11.1%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $37.3B | $5.6B | $905.0M | $4.7B | 12.6% |
| 2023-07-30 | $42.9B | $6.6B | $792.0M | $5.8B | 13.5% |
| 2023-10-29 | $37.7B | $4.2B | $671.0M | $3.6B | 9.4% |
| 2024-01-28 | $34.8B | $4.7B | $858.0M | $3.9B | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.4B | 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 improvement
Operating cash flow rose despite lower revenue, signaling a stronger cash conversion from operations. This increase was the primary factor behind the higher free cash flow and margin.
The improvement in operating cash flow supported a higher free cash flow margin, even as revenue declined.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose despite lower revenue, and capital expenditure was higher than the prior quarter but lower than a year ago. The resulting free cash flow and free cash flow margin both improved, indicating stronger cash conversion.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, revenue was lower while operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower.
Monitor capital expenditure, which increased sequentially but remained below the year-ago level, as it directly affects free cash flow generation.