Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, while operating cash flow also decreased. Free cash flow turned negative, driven by capital expenditure exceeding operating cash flow.
- Operating cash flow as a proportion of revenue weakened compared to both the prior quarter and the year-ago quarter. Capital expenditure remained elevated relative to operating cash flow, resulting in a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin turned negative from positive. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow shifted from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$873.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$48.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$218.0M
Cash generated by operations before capital spending.
CapEx
$266.0M
Capital spending and related asset purchases.
FCF margin
-0.7%
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 |
|---|---|---|---|---|---|
| 2023-05-31 | $8.5B | $468.0M | $223.0M | $245.0M | 2.9% |
| 2023-08-31 | $8.5B | $686.0M | $170.0M | $516.0M | 6.1% |
| 2023-11-30 | $8.4B | $448.0M | $288.0M | $160.0M | 1.9% |
| 2024-02-29 | $6.8B | $218.0M | $266.0M | -$48.0M | -0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -5.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$312.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure remained substantial in absolute terms, exceeding operating cash flow for the quarter. This relationship was the strongest observable factor behind the negative free cash flow.
The gap between capital expenditure and operating cash flow drove free cash flow to a negative position.
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 weakened compared to both the prior quarter and the year-ago quarter. Capital expenditure remained elevated relative to operating cash flow, resulting in a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin turned negative from positive. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow shifted from positive to negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly pressures free cash flow.