Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved from the prior quarter and the same quarter a year ago, driven by a larger increase in operating cash flow relative to revenue. Cash conversion strengthened as operating cash flow grew more than capital expenditure did.
- Revenue increased from both the preceding quarter and the year-ago quarter, while operating cash flow grew by a larger amount, resulting in a higher free cash flow. Capital expenditure also rose, but its increase was substantially smaller than the improvement in operating cash flow.
- Compared with the immediately preceding quarter, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter a year earlier, the same pattern held, with each metric substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$39.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$15.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$15.3B
Cash generated by operations before capital spending.
CapEx
$369.0M
Capital spending and related asset purchases.
FCF margin
57.5%
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 |
|---|---|---|---|---|---|
| 2023-07-30 | $13.5B | $6.3B | $289.0M | $6.1B | 44.9% |
| 2023-10-29 | $18.1B | $7.3B | $278.0M | $7.1B | 38.9% |
| 2024-01-28 | $22.1B | $11.5B | $254.0M | $11.2B | 50.9% |
| 2024-04-28 | $26.0B | $15.3B | $369.0M | $15.0B | 57.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 Growth
Operating cash flow rose compared to both the prior quarter and the year-ago quarter. The filing notes that the increase was due to growth in revenue.
Higher operating cash flow directly drove free cash flow higher and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the preceding quarter and the year-ago quarter, while operating cash flow grew by a larger amount, resulting in a higher free cash flow. Capital expenditure also rose, but its increase was substantially smaller than the improvement in operating cash flow.
Compared with the immediately preceding quarter, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter a year earlier, the same pattern held, with each metric substantially higher.
The trend in purchases of marketable securities should be monitored, as they were cited as a primary factor for higher cash used in investing activities.