Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and the year-ago quarter. Free cash flow was negative but improved from the same quarter last year, driven by a higher operating cash flow that more than offset a modest increase in capital expenditure.
- Operating cash flow as a percentage of revenue was higher than both the prior quarter and the year-ago quarter. However, capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow decreased, capital expenditure increased, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was significantly higher, capital expenditure was stable, and free cash flow improved from a larger negative to a smaller negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$693.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$28.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$926.0M
Cash generated by operations before capital spending.
CapEx
$954.0M
Capital spending and related asset purchases.
FCF margin
-0.1%
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 |
|---|---|---|---|---|---|
| 2023-11-04 | $34.0B | $504.0M | $953.0M | -$449.0M | -1.3% |
| 2024-02-03 | $37.1B | $1.9B | $997.0M | $923.0M | 2.5% |
| 2024-08-17 | $33.9B | $1.1B | $875.0M | $247.0M | 0.7% |
| 2024-11-09 | $33.6B | $926.0M | $954.0M | -$28.0M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -4.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 Improvement
Operating cash flow was substantially higher than the same quarter last year, which was the primary factor narrowing the free cash flow deficit. The filing notes that net earnings adjusted for non-cash items generated higher operating cash flow in the first three quarters of the current year compared to the prior year, while changes in working capital were a net use of cash.
The higher operating cash flow reduced the free cash flow deficit compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than both the prior quarter and the year-ago quarter. However, capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue was slightly lower while operating cash flow decreased, capital expenditure increased, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue was slightly lower, operating cash flow was significantly higher, capital expenditure was stable, and free cash flow improved from a larger negative to a smaller negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly determines the sustainability of free cash flow.