Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter while free cash flow improved. Compared to the same quarter last year, revenue was higher but free cash flow and margin were lower.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin was lower than the year-ago quarter but higher than the prior quarter, reflecting a sequential improvement in cash generation relative to revenue.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were both higher, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was comparable, and capital expenditure was notably higher, resulting in a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.4B
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
38.5%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $12.9B | $143.0M | $1.1B | -$937.0M | -7.2% |
| 2024-02-29 | $13.3B | $5.5B | $1.7B | $3.8B | 28.6% |
| 2024-05-31 | $14.3B | $6.1B | $2.8B | $3.3B | 23.0% |
| 2024-08-31 | $13.3B | $7.4B | $2.3B | $5.1B | 38.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose markedly compared to both the prior quarter and the same quarter last year. This was the most observable change among the supplied metrics and directly reduced free cash flow relative to operating cash flow.
Despite higher operating cash flow, free cash flow and margin declined year-over-year due to the increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin was lower than the year-ago quarter but higher than the prior quarter, reflecting a sequential improvement in cash generation relative to revenue.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were both higher, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was comparable, and capital expenditure was notably higher, resulting in a lower free cash flow and margin.
Monitor capital expenditure levels, which were substantially higher than the year-ago quarter and represent a key use of cash.