Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable versus the same quarter last year, supported by lower capital expenditure, while revenue declined. Compared to the prior quarter, cash generation improved as operating cash flow increased more than capital spending.
- Revenue was lower year over year, but operating cash flow and free cash flow remained stable, resulting in a slightly improved free cash flow margin. Sequentially, operating cash flow rose faster than revenue, lifting the margin and free cash flow amount.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter a year ago, revenue was lower but free cash flow was similar, with a slightly higher margin due to lower capital expenditure.
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
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$847.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 |
|---|---|---|---|---|---|
| 2023-07-30 | $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% |
| 2024-04-28 | $36.4B | $5.5B | $847.0M | $4.7B | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Lower Capital Expenditure
Capital expenditure decreased compared to both the prior quarter and the same quarter last year, which directly supported free cash flow despite flat operating cash flow year over year.
The reduction in capital spending was the strongest observable driver of free cash flow stability relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower year over year, but operating cash flow and free cash flow remained stable, resulting in a slightly improved free cash flow margin. Sequentially, operating cash flow rose faster than revenue, lifting the margin and free cash flow amount.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter a year ago, revenue was lower but free cash flow was similar, with a slightly higher margin due to lower capital expenditure.
Monitor the trend in revenue, as the decline relative to the same quarter last year was not offset by operating cash flow growth.