Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved versus the prior year quarter, with operating cash flow and free cash flow higher. Compared to the immediately preceding quarter, cash generation weakened, driven by lower operating cash flow.
- Revenue was stable relative to the year-ago quarter, while operating cash flow and free cash flow increased, leading to an improved free cash flow margin. Capital expenditure was similar year over year, indicating higher cash retention from operations.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year ago, revenue was slightly higher, and operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$76.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$138.4M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
4.8%
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 |
|---|---|---|---|---|---|
| 2023-05-31 | $1.7B | $290.8M | $57.1M | $233.7M | 14.1% |
| 2023-08-31 | $1.7B | $265.9M | $68.6M | $197.3M | 11.7% |
| 2023-11-30 | $1.8B | $577.2M | $76.7M | $500.5M | 28.6% |
| 2024-02-29 | $1.6B | $138.4M | $62.0M | $76.4M | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Improvement
Operating cash flow increased compared to the same quarter last year, despite stable revenue, indicating a higher proportion of revenue converted to cash.
This improvement directly lifted free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the year-ago quarter, while operating cash flow and free cash flow increased, leading to an improved free cash flow margin. Capital expenditure was similar year over year, indicating higher cash retention from operations.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year ago, revenue was slightly higher, and operating cash flow, free cash flow, and margin all improved.
Monitor whether operating cash flow sustains its improvement from the year-ago level, as it is the primary driver of free cash flow.