Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year over year. Free cash flow improved from both periods, though margin was slightly lower than a year ago.
- Operating cash flow increased from both the prior quarter and the year-ago quarter. Capital expenditure also rose, but the increase in operating cash flow outpaced capex, leading to higher free cash flow.
- Compared to the preceding quarter, revenue and operating cash flow moved in opposite directions, with revenue lower and cash flow higher. Year over year, both revenue and free cash flow were higher, while margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.4B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
40.8%
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 |
|---|---|---|---|---|---|
| 2021-11-30 | $10.4B | -$3.7B | $925.0M | -$4.6B | -44.5% |
| 2022-02-28 | $10.5B | $3.8B | $1.1B | $2.7B | 26.1% |
| 2022-05-31 | $42.4B | $4.0B | $1.4B | $2.6B | 6.0% |
| 2022-08-31 | $11.4B | $6.4B | $1.7B | $4.7B | 40.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 302.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.0% | 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.
Operating Cash Flow Growth
Operating cash flow rose sequentially and year over year, driving free cash flow higher despite increased capital spending.
The stronger cash generation supported free cash flow expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from both the prior quarter and the year-ago quarter. Capital expenditure also rose, but the increase in operating cash flow outpaced capex, leading to higher free cash flow.
Compared to the preceding quarter, revenue and operating cash flow moved in opposite directions, with revenue lower and cash flow higher. Year over year, both revenue and free cash flow were higher, while margin was slightly lower.
Capital expenditure increased; monitor its trajectory relative to operating cash flow.