Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow were higher than both the prior quarter and the same quarter one year earlier. The free cash flow margin also rose, reflecting a higher proportion of revenue converted to free cash flow.
- Operating cash flow exceeded capital expenditure, yielding free cash flow. The free cash flow margin, representing the share of revenue converted to free cash flow, was higher than both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher. Compared to the same quarter one year earlier, all metrics were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$426.0M
Capital spending and related asset purchases.
FCF margin
27.4%
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 |
|---|---|---|---|---|---|
| 2023-07-28 | $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% |
| 2024-04-26 | $8.6B | $2.8B | $426.0M | $2.4B | 27.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 359.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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, providing the foundation for free cash flow. Its increase contributed to the rise in free cash flow despite higher capital expenditure.
The higher operating cash flow directly supported the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding free cash flow. The free cash flow margin, representing the share of revenue converted to free cash flow, was higher than both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher. Compared to the same quarter one year earlier, all metrics were also higher.
Monitor the relationship between capital expenditure and operating cash flow, as it directly impacts free cash flow.