Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter but remained below the level of the same quarter last year. The quarter reflected a higher free cash flow margin compared to the preceding period yet a lower margin than a year ago.
- Revenue was stable relative to the prior quarter and the year-ago period. Operating cash flow rose significantly from the preceding quarter, driving a larger free cash flow, with capital expenditure also higher but to a lesser extent.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, and the margin strengthened. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$647.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$373.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$458.7M
Cash generated by operations before capital spending.
CapEx
$85.6M
Capital spending and related asset purchases.
FCF margin
20.8%
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 |
|---|---|---|---|---|---|
| 2024-02-29 | $1.6B | $138.4M | $62.0M | $76.4M | 4.8% |
| 2024-05-31 | $1.6B | $163.1M | $68.3M | $94.8M | 5.8% |
| 2024-08-31 | $1.7B | $161.7M | $59.0M | $102.7M | 6.1% |
| 2024-11-30 | $1.8B | $458.7M | $85.6M | $373.1M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 Variability
Operating cash flow was the primary determinant of the free cash flow change, rising substantially from the previous quarter but falling from a year ago. The filing context notes the company operates in competitive global markets across two segments, yet no specific cash flow drivers are identified.
Future free cash flow will depend on whether operating cash flow can sustain or improve its current level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter and the year-ago period. Operating cash flow rose significantly from the preceding quarter, driving a larger free cash flow, with capital expenditure also higher but to a lesser extent.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, and the margin strengthened. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the margin weakened.
Monitor capital expenditure, which increased relative to both the prior quarter and the same period last year.