Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, driven by higher operating cash flow and a modest increase in capital expenditure. Free cash flow margin strengthened, though it remained below the level of the same quarter one year earlier.
- Revenue was higher than the prior quarter, and operating cash flow rose substantially, leading to a larger free cash flow despite a slight increase in capital expenditure. The free cash flow margin improved compared to the preceding quarter.
- Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow and margin showing notable strengthening. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$920.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$129.0M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-11-30 | $12.4B | $1.0B | $129.0M | $920.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$994.0M | 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 Recovery
Operating cash flow increased substantially from the prior quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor in the quarter's cash conversion.
Higher operating cash flow directly lifted free cash flow and margin, reversing the prior quarter's weaker performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow rose substantially, leading to a larger free cash flow despite a slight increase in capital expenditure. The free cash flow margin improved compared to the preceding quarter.
Compared to the immediately preceding quarter, all cash flow metrics improved, with free cash flow and margin showing notable strengthening. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's improvement may depend on sustainability of working capital changes.