Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased versus the prior quarter and the same quarter last year, leading to a higher free cash flow. The free cash flow margin weakened slightly compared to the same quarter one year earlier but improved significantly from the prior quarter.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the same quarter a year ago. Capital expenditure was lower than both comparison periods, which further supported free cash flow and the free cash flow margin.
- Compared to the immediately preceding quarter, all key metrics improved significantly: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin was slightly lower and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$61.0M
Capital spending and related asset purchases.
FCF margin
57.7%
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 | $2.7B | $842.0M | $10.0M | $832.0M | 30.7% |
| 2023-10-31 | $3.0B | -$97.0M | $84.0M | -$181.0M | -6.1% |
| 2024-01-31 | $3.4B | $613.0M | $63.0M | $550.0M | 16.2% |
| 2024-04-30 | $6.7B | $4.0B | $61.0M | $3.9B | 57.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 higher than both the prior quarter and the year-ago quarter, and it increased at a faster pace than revenue compared to the prior quarter. This drove the improvement in free cash flow and the free cash flow margin relative to the prior quarter.
The higher operating cash flow was the strongest observable driver of the current quarter's free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the same quarter a year ago. Capital expenditure was lower than both comparison periods, which further supported free cash flow and the free cash flow margin.
Compared to the immediately preceding quarter, all key metrics improved significantly: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was slightly lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin was slightly lower and capital expenditure was lower.
Monitor the trend in free cash flow margin, which declined slightly from the same quarter last year despite higher revenue.