Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from both the prior quarter and the same quarter last year, driven by lower operating cash flow. Revenue increased versus the prior quarter but was slightly higher than a year ago, while free cash flow margin weakened.
- Revenue rose compared to the prior quarter, yet operating cash flow fell, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was slightly higher while operating cash flow, free cash flow, and free cash flow margin were significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.8M
Cash generated by operations before capital spending.
CapEx
$38.8M
Capital spending and related asset purchases.
FCF margin
2.3%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $8.7B | $951.9M | $22.3M | $929.5M | 10.6% |
| 2023-11-30 | $11.0B | $2.6B | $46.2M | $2.5B | 23.2% |
| 2024-02-29 | $7.3B | $367.9M | $72.9M | $294.9M | 4.0% |
| 2024-05-31 | $8.8B | $241.8M | $38.8M | $203.0M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, which was the primary factor behind the reduction in free cash flow. Revenue increased, but the conversion into cash weakened.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to the prior quarter, yet operating cash flow fell, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was slightly higher while operating cash flow, free cash flow, and free cash flow margin were significantly lower.
Monitor the trajectory of operating cash flow, as it declined from both comparison periods despite higher revenue.