Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position a year earlier, though it weakened sharply from the prior quarter. The cash conversion rate improved year-over-year but declined sequentially as operating cash flow fell relative to revenue.
- Revenue decreased compared to both the prior quarter and the year-ago quarter. Operating cash flow improved from a negative level a year earlier but dropped significantly from the preceding quarter. Capital expenditure was lower than both comparison periods. Free cash flow margin turned positive year-over-year but weakened sequentially.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$274.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$394.0M
Cash generated by operations before capital spending.
CapEx
$120.0M
Capital spending and related asset purchases.
FCF margin
2.4%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $13.4B | $2.8B | $205.0M | $2.6B | 19.5% |
| 2024-02-29 | $12.4B | $2.1B | $141.0M | $1.9B | 15.4% |
| 2024-05-31 | $12.6B | $2.6B | $213.0M | $2.4B | 19.1% |
| 2024-08-31 | $11.6B | $394.0M | $120.0M | $274.0M | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$513.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow recovery
Operating cash flow turned from an outflow to an inflow compared to the same quarter last year, driven by a smaller net decrease from working capital components, as noted in the filing. This shift enabled free cash flow to become positive.
Free cash flow margin improved from negative to positive year-over-year, despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased compared to both the prior quarter and the year-ago quarter. Operating cash flow improved from a negative level a year earlier but dropped significantly from the preceding quarter. Capital expenditure was lower than both comparison periods. Free cash flow margin turned positive year-over-year but weakened sequentially.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin improved from negative to positive.
Monitor the net change in working capital components, particularly the impact of inventory purchases and accounts payable timing on operating cash flow.