Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin declined from both the prior quarter and the same quarter last year, as operating cash flow decreased year over year. Revenue rose sequentially but was only slightly higher than a year ago.
- Revenue generated operating cash flow, which after capital expenditure spending resulted in free cash flow. The free cash flow margin indicates the portion of revenue converted into free cash flow.
- Compared to the preceding quarter, revenue was higher, operating cash flow was slightly lower, and capital expenditure was lower, leading to stable free cash flow but a lower free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly higher, while operating cash flow and free cash flow were both lower, and free cash flow margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.4B
Cash generated by operations before capital spending.
CapEx
$719.0M
Capital spending and related asset purchases.
FCF margin
10.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-07-28 | $43.2B | $5.4B | $719.0M | $4.7B | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Sequential revenue growth
Revenue in the current quarter was higher than the prior quarter, while free cash flow remained unchanged sequentially.
The revenue increase helped sustain free cash flow at the prior quarter's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow, which after capital expenditure spending resulted in free cash flow. The free cash flow margin indicates the portion of revenue converted into free cash flow.
Compared to the preceding quarter, revenue was higher, operating cash flow was slightly lower, and capital expenditure was lower, leading to stable free cash flow but a lower free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly higher, while operating cash flow and free cash flow were both lower, and free cash flow margin declined.
Monitor operating cash flow trends, as it decreased compared to the same quarter last year.