Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the preceding quarter and the same quarter one year earlier. The increase was supported by higher revenue and operating cash flow.
- Revenue and operating cash flow rose from the prior quarter and the year-ago period, while capital expenditure decreased sequentially but increased year over year. Free cash flow and margin strengthened, indicating efficient conversion of revenue into cash.
- Free cash flow margin was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow and revenue also showed sequential and year-over-year growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$56.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$16.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$17.6B
Cash generated by operations before capital spending.
CapEx
$813.0M
Capital spending and related asset purchases.
FCF margin
47.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-10-27 | $35.1B | $17.6B | $813.0M | $16.8B | 47.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $645.0M | 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 compared to the prior quarter and the year-ago period, contributing to higher operating cash flow. The filing attributes the operating cash flow increase to revenue growth, partially offset by advanced payments on supply agreements.
The revenue expansion was the primary support for the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow rose from the prior quarter and the year-ago period, while capital expenditure decreased sequentially but increased year over year. Free cash flow and margin strengthened, indicating efficient conversion of revenue into cash.
Free cash flow margin was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow and revenue also showed sequential and year-over-year growth.
Monitor the timing of advanced payments on supply agreements and early customer receipts, as noted in the filing, which could affect future cash flow patterns.