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 last year, resulting in a strongly improved free cash flow margin. Revenue was also higher compared to both periods.
- Revenue was higher, and operating cash flow increased sharply, while capital expenditure was lower than the prior quarter. This combination produced a much higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all improved markedly, while capital expenditure was lower. Compared to the same quarter a year ago, all metrics were higher, with free cash flow margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$346.0M
Capital spending and related asset purchases.
FCF margin
26.3%
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 |
|---|---|---|---|---|---|
| 2023-04-28 | $8.5B | $2.5B | $378.0M | $2.1B | 24.4% |
| 2023-07-28 | $7.7B | $875.0M | $354.0M | $521.0M | 6.8% |
| 2023-10-27 | $8.0B | $661.0M | $461.0M | $200.0M | 2.5% |
| 2024-01-26 | $8.1B | $2.5B | $346.0M | $2.1B | 26.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 161.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Strong Operating Cash Flow
Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, which was the main factor behind the improved free cash flow and free cash flow margin.
This improvement directly drove the quarter's free cash flow performance and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow increased sharply, while capital expenditure was lower than the prior quarter. This combination produced a much higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all improved markedly, while capital expenditure was lower. Compared to the same quarter a year ago, all metrics were higher, with free cash flow margin showing a notable improvement.
Monitor the consistency of operating cash flow generation, as it varied considerably between the prior quarter and the current quarter.