Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the same quarter last year but lower than the prior quarter. Free cash flow margin weakened compared to both the prior quarter and the same quarter last year.
- Operating cash flow was lower than the prior quarter and slightly lower than the same quarter last year, while capital expenditure decreased compared to both periods. Free cash flow declined relative to both the prior quarter and the year-ago quarter, with the margin narrowing.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were slightly lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$141.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 |
|---|---|---|---|---|---|
| 2023-05-31 | $12.8B | $2.3B | $269.0M | $2.0B | 15.5% |
| 2023-08-31 | $12.9B | -$66.0M | $253.0M | -$319.0M | -2.5% |
| 2023-11-30 | $13.4B | $2.8B | $205.0M | $2.6B | 19.5% |
| 2024-02-29 | $12.4B | $2.1B | $141.0M | $1.9B | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $30.0M | 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 decline
Operating cash flow was lower than the prior quarter and slightly below the year-ago quarter, despite stable revenue. The filing notes a favorable net change in working capital for the nine-month period, but the quarterly comparison shows a decline.
The lower operating cash flow directly reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and slightly lower than the same quarter last year, while capital expenditure decreased compared to both periods. Free cash flow declined relative to both the prior quarter and the year-ago quarter, with the margin narrowing.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were slightly lower, and margin weakened.
Monitor the trend in free cash flow margin, as it declined from both the prior quarter and the year-ago quarter.