Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased from the prior quarter and from the same quarter last year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter.
- Operating cash flow as a percentage of revenue weakened compared to the prior quarter, while free cash flow margin was slightly higher than the year-ago quarter. Capital expenditure increased from both comparison periods.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics were higher except free cash flow margin, which was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$46.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.5B
Cash generated by operations before capital spending.
CapEx
$977.0M
Capital spending and related asset purchases.
FCF margin
45.0%
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 |
|---|---|---|---|---|---|
| 2023-10-29 | $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% |
| 2024-07-28 | $30.0B | $14.5B | $977.0M | $13.5B | 45.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $102.0M | 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 increased from both the prior quarter and the year-ago quarter, supporting higher free cash flow. The filing notes that cash from operations rose in the first half of the fiscal year due to revenue growth, partially offset by higher tax payments.
Higher revenue was the strongest observable driver of free cash flow improvement compared to the year-ago quarter.
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 weakened compared to the prior quarter, while free cash flow margin was slightly higher than the year-ago quarter. Capital expenditure increased from both comparison periods.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics were higher except free cash flow margin, which was stable.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.