Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter a year earlier. Free cash flow margin improved compared to those periods, reflecting stronger cash conversion.
- Operating cash flow as a percentage of revenue rose, while capital expenditure remained modest. The filing notes that the increase in operating cash flow was supported by revenue growth and by customer payments received ahead of invoice due dates.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Relative to the same quarter one year earlier, all metrics showed improvement, with revenue and operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$27.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$11.5B
Cash generated by operations before capital spending.
CapEx
$254.0M
Capital spending and related asset purchases.
FCF margin
50.9%
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 |
|---|---|---|---|---|---|
| 2023-04-30 | $7.2B | $2.9B | $248.0M | $2.7B | 37.0% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue rose compared to the prior quarter and the year-ago quarter, providing the primary basis for higher operating cash flow and free cash flow.
This growth directly supported the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue rose, while capital expenditure remained modest. The filing notes that the increase in operating cash flow was supported by revenue growth and by customer payments received ahead of invoice due dates.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Relative to the same quarter one year earlier, all metrics showed improvement, with revenue and operating cash flow higher and capital expenditure lower.
Track whether customer prepayments continue to support operating cash flow, as highlighted in the filing.