Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. Revenue was lower than a year ago but higher than the preceding quarter.
- Revenue increased from the prior quarter, yet operating cash flow declined, resulting in a lower free cash flow and a weakened free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
- Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, as operating cash flow decreased. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$426.0M
Capital spending and related asset purchases.
FCF margin
11.6%
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 |
|---|---|---|---|---|---|
| 2023-11-03 | $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% |
| 2024-08-02 | $23.6B | $3.2B | $426.0M | $2.7B | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.4% | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, while revenue was mixed relative to those periods. This was the primary factor behind the weakened free cash flow and margin.
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 increased from the prior quarter, yet operating cash flow declined, resulting in a lower free cash flow and a weakened free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, as operating cash flow decreased. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite revenue growth.