Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were significantly higher than both the prior quarter and the same quarter one year earlier, driving a sharp improvement in free cash flow margin. Revenue also increased compared to those periods, while capital expenditure remained relatively stable.
- Revenue rose alongside operating cash flow, and free cash flow improved as a result of operating cash flow outpacing capital expenditure. The free cash flow margin strengthened, reflecting higher cash conversion efficiency.
- Compared with the immediately preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher. Versus the same quarter one year earlier, the same pattern held, with capital expenditure staying essentially flat across both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$206.5M
Capital spending and related asset purchases.
FCF margin
36.7%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $2.0B | $45.5M | $136.9M | -$91.4M | -4.6% |
| 2023-07-30 | $2.2B | $476.7M | $145.5M | $331.2M | 15.0% |
| 2023-10-29 | $2.2B | $389.9M | $162.9M | $227.0M | 10.3% |
| 2024-01-28 | $3.2B | $1.4B | $206.5M | $1.2B | 36.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 Strength
Operating cash flow increased substantially compared to both the prior quarter and the year-ago quarter, far outpacing the change in capital expenditure. This was the primary factor behind the higher free cash flow and improved margin.
The surge in operating cash flow directly lifted free cash flow and margin, demonstrating strong cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose alongside operating cash flow, and free cash flow improved as a result of operating cash flow outpacing capital expenditure. The free cash flow margin strengthened, reflecting higher cash conversion efficiency.
Compared with the immediately preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher. Versus the same quarter one year earlier, the same pattern held, with capital expenditure staying essentially flat across both comparisons.
Monitor the trend in capital expenditure relative to operating cash flow, as stable capex against rising cash flow may further support free cash flow.