Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the preceding quarter but weakened compared to the same quarter a year ago. Operating cash flow and revenue were higher sequentially, while the free cash flow margin was lower than the year-ago level.
- Revenue and operating cash flow both increased compared to the prior quarter, resulting in higher free cash flow and a wider free cash flow margin. Capital expenditure was lower sequentially, which further supported cash conversion.
- Relative to the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$153.0M
Capital spending and related asset purchases.
FCF margin
10.5%
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 |
|---|---|---|---|---|---|
| 2024-01-31 | $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% |
| 2024-10-31 | $14.1B | $1.6B | $153.0M | $1.5B | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Revenue Growth
Revenue increased compared to the immediately preceding quarter, contributing to higher operating cash flow and free cash flow quarter over quarter.
This sequential revenue improvement was the strongest observable driver of the quarter's higher free cash flow relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased compared to the prior quarter, resulting in higher free cash flow and a wider free cash flow margin. Capital expenditure was lower sequentially, which further supported cash conversion.
Relative to the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, and the free cash flow margin narrowed.
Monitor the trajectory of operating cash flow, as it declined year over year despite higher revenue.