Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply versus both the prior quarter and the year-ago quarter. Revenue was lower than the year-ago period but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin.
- Revenue was lower than the year-ago quarter, yet operating cash flow was higher, and capital expenditure was nearly stable, leading to a higher free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared with the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$382.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 |
|---|---|---|---|---|---|
| 2023-08-04 | $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% |
| 2024-05-03 | $21.4B | $4.3B | $382.0M | $3.9B | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, even though revenue was lower than the year-ago period. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the year-ago quarter, yet operating cash flow was higher, and capital expenditure was nearly stable, leading to a higher free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared with the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin were higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.