Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to the prior quarter but was relatively stable versus the same quarter last year. The free cash flow margin weakened sequentially while remaining slightly below the year-ago level.
- Revenue and operating cash flow both declined from the previous quarter, while capital expenditure increased, resulting in lower free cash flow. The free cash flow margin contracted as a result.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and capital expenditure was higher. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure increased, and free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$818.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 |
|---|---|---|---|---|---|
| 2024-01-28 | $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% |
| 2024-10-27 | $40.2B | $4.2B | $818.0M | $3.4B | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, outpacing the change in operating cash flow. This was the strongest observable factor reducing free cash flow.
Higher capital expenditure absorbed a larger share of operating cash flow, compressing free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both declined from the previous quarter, while capital expenditure increased, resulting in lower free cash flow. The free cash flow margin contracted as a result.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and capital expenditure was higher. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure increased, and free cash flow was slightly lower.
Monitor the trend in capital expenditure, as it increased both sequentially and year-over-year, directly affecting free cash flow.