Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than both the prior quarter and the same quarter last year. Free cash flow turned positive from negative in the prior quarter, but was lower than the year-ago period.
- Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased. The resulting free cash flow margin improved from negative to positive, though it remained slightly below the year-ago level.
- Compared to the immediately preceding quarter, free cash flow improved markedly as operating cash flow rose and capital spending fell. Compared to the same quarter one year earlier, free cash flow was lower, driven by a decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$462.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$581.0M
Cash generated by operations before capital spending.
CapEx
$119.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $13.2B | $976.0M | $137.0M | $839.0M | 6.4% |
| 2023-10-31 | $13.8B | $2.0B | $134.0M | $1.8B | 13.3% |
| 2024-01-31 | $13.2B | $121.0M | $158.0M | -$37.0M | -0.3% |
| 2024-04-30 | $12.8B | $581.0M | $119.0M | $462.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 sharply from the prior quarter, more than offsetting the decline in revenue and enabling a return to positive free cash flow.
This was the primary factor behind the swing from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased. The resulting free cash flow margin improved from negative to positive, though it remained slightly below the year-ago level.
Compared to the immediately preceding quarter, free cash flow improved markedly as operating cash flow rose and capital spending fell. Compared to the same quarter one year earlier, free cash flow was lower, driven by a decline in operating cash flow.
Monitor whether operating cash flow can sustain its recent improvement relative to the prior year period.