Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially, boosting free cash flow and margin, though free cash flow remained below the year-ago level. Capital expenditure rose slightly from both comparison periods.
- Revenue increased from the prior quarter, while operating cash flow rose at a faster rate, leading to higher free cash flow and a materially improved free cash flow margin. Compared to a year ago, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow and a weakened margin.
- Versus the preceding quarter, all cash flow metrics strengthened: operating cash flow, free cash flow, and free cash flow margin were all higher. Relative to the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$608.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-07-31 | $7.7B | $1.2B | $543.0M | $611.0M | 7.9% |
| 2024-10-31 | $8.5B | $2.0B | $608.0M | $1.4B | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 recovery
Operating cash flow rose substantially from the previous quarter, outpacing revenue growth and driving a higher free cash flow margin. This is the strongest observable sequential driver of cash conversion.
The sequential rise in operating cash flow was the primary factor behind the improvement in free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash flow rose at a faster rate, leading to higher free cash flow and a materially improved free cash flow margin. Compared to a year ago, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow and a weakened margin.
Versus the preceding quarter, all cash flow metrics strengthened: operating cash flow, free cash flow, and free cash flow margin were all higher. Relative to the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.