Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially and year-over-year, while free cash flow improved significantly from the prior year's negative level. Operating cash flow remained stable compared to the previous quarter, supporting cash conversion.
- Operating cash flow was stable sequentially, but capital expenditure was slightly higher, leading to free cash flow that was essentially flat. Compared to a year ago, operating cash flow increased and capital expenditure decreased, turning free cash flow positive.
- Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow matched the prior quarter and improved from a year ago. Free cash flow and margin improved sharply year-over-year from a negative level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$488.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$620.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 |
|---|---|---|---|---|---|
| 2023-05-05 | $22.3B | $2.1B | $380.0M | $1.7B | 7.7% |
| 2023-08-04 | $25.0B | $3.9B | $385.0M | $3.5B | 13.9% |
| 2023-11-03 | $20.5B | $1.1B | $579.0M | $485.0M | 2.4% |
| 2024-02-02 | $18.6B | $1.1B | $620.0M | $488.0M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$34.8B | 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 Stability
Despite lower revenue, operating cash flow held steady sequentially and rose from a year ago, providing a solid foundation for free cash flow generation.
This stability enabled the company to deliver positive free cash flow and a higher margin compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable sequentially, but capital expenditure was slightly higher, leading to free cash flow that was essentially flat. Compared to a year ago, operating cash flow increased and capital expenditure decreased, turning free cash flow positive.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow matched the prior quarter and improved from a year ago. Free cash flow and margin improved sharply year-over-year from a negative level.
Monitor capital expenditure trends, as a slight increase this quarter versus the prior level could pressure free cash flow if revenue continues to decline.