Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved significantly compared to both the preceding quarter and the same quarter one year earlier, driven by a substantial increase in operating cash flow. The company's filing indicates that cash from operations is its primary liquidity source and that it believes current resources are adequate for planned expenditures.
- Revenue was higher than both prior periods. Operating cash flow rose sharply, leading to a large increase in free cash flow despite a modest rise in capital expenditure. The free cash flow margin expanded accordingly, reflecting stronger cash generation relative to revenue.
- Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow increasing markedly while capital expenditure rose only slightly. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow increased and capital expenditure remained relatively stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$162.0M
Capital spending and related asset purchases.
FCF margin
9.3%
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 |
|---|---|---|---|---|---|
| 2023-10-31 | $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% |
| 2024-07-31 | $13.5B | $1.4B | $162.0M | $1.3B | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.8B | 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 Growth
Operating cash flow was significantly higher than both the preceding quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow directly improved free cash flow and margin, indicating stronger cash conversion from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow rose sharply, leading to a large increase in free cash flow despite a modest rise in capital expenditure. The free cash flow margin expanded accordingly, reflecting stronger cash generation relative to revenue.
Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow increasing markedly while capital expenditure rose only slightly. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow increased and capital expenditure remained relatively stable.
Monitor the trend in capital expenditure, as it was higher in the current quarter compared to both prior periods, which could affect future free cash flow if it continues to rise.