Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter was slightly higher than the prior quarter but lower than the same quarter last year. The free cash flow margin weakened modestly compared to both periods.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow followed a similar pattern, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter. The resulting free cash flow margin was slightly lower than both comparison periods.
- Compared to the immediately preceding quarter, free cash flow was slightly higher despite a higher capital expenditure, while revenue increased. Compared to the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$932.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$411.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$535.0M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
5.9%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $8.4B | $448.0M | $288.0M | $160.0M | 1.9% |
| 2024-02-29 | $6.8B | $218.0M | $266.0M | -$48.0M | -0.7% |
| 2024-05-31 | $6.8B | $515.0M | $106.0M | $409.0M | 6.0% |
| 2024-08-31 | $7.0B | $535.0M | $124.0M | $411.0M | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 297.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$679.0M | 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 Increase
Capital expenditure rose from the prior quarter, while free cash flow margin edged lower. The higher outlay coincided with a slightly reduced conversion rate.
The increased capital spending relative to operating cash flow was accompanied by a modest decline in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow followed a similar pattern, while capital expenditure increased from the prior quarter but decreased from the year-ago quarter. The resulting free cash flow margin was slightly lower than both comparison periods.
Compared to the immediately preceding quarter, free cash flow was slightly higher despite a higher capital expenditure, while revenue increased. Compared to the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and lower revenue.
Monitor the company's potential need for additional financing for acquisitions or expansion, as discussed in the liquidity and capital resources section of the filing.