Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and the same quarter last year, and free cash flow turned positive. Operating cash flow improved, while capital expenditure increased.
- Revenue and operating cash flow were higher, leading to free cash flow that was positive compared to negative in both the prior quarter and the year-ago quarter. The free cash flow margin improved from negative to positive.
- Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow turned positive. Relative to the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$396.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
5.8%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $4.0B | $249.0M | $1.5B | -$1.2B | -30.2% |
| 2023-11-30 | $4.7B | $1.4B | $1.8B | -$395.0M | -8.4% |
| 2024-02-29 | $5.8B | $1.2B | $1.4B | -$165.0M | -2.8% |
| 2024-05-30 | $6.8B | $2.5B | $2.1B | $396.0M | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.6% | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, contributing to the positive free cash flow. This improvement was the primary factor in the shift from negative to positive free cash flow.
The improved cash generation enabled the company to achieve positive free cash flow after capital expenditures.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were higher, leading to free cash flow that was positive compared to negative in both the prior quarter and the year-ago quarter. The free cash flow margin improved from negative to positive.
Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow turned positive. Relative to the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from negative to positive.
The level of capital expenditure relative to operating cash flow, as it increased while operating cash flow also grew.