Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a substantial increase in operating cash flow. Operating cash flow improved significantly from both the prior quarter and the same quarter last year, while capital expenditure decreased.
- Revenue was higher quarter over quarter and year over year. Operating cash flow increased markedly from the previous quarter and improved from a year ago, while capital expenditure declined. As a result, free cash flow improved to positive from negative sequentially and was higher than the prior year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow increased substantially, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$533.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$560.0M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 2023-07-31 | $7.0B | $1.5B | $671.0M | $854.0M | 12.2% |
| 2023-10-31 | $7.4B | $2.8B | $675.0M | $2.2B | 29.5% |
| 2024-01-31 | $6.8B | $64.0M | $656.0M | -$592.0M | -8.8% |
| 2024-04-30 | $7.2B | $1.1B | $560.0M | $533.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.6B | 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
Operating cash flow increased substantially from the prior quarter and was higher than the year-ago quarter, representing the strongest observable driver behind the improvement in free cash flow.
This strong operating cash generation enabled a positive free cash flow despite capital expenditures.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher quarter over quarter and year over year. Operating cash flow increased markedly from the previous quarter and improved from a year ago, while capital expenditure declined. As a result, free cash flow improved to positive from negative sequentially and was higher than the prior year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow increased substantially, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor whether the lower capital expenditure level compared to prior periods is sustainable.