Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened sequentially but was slightly lower than the year-ago period.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter. Capital expenditure also decreased, resulting in free cash flow that was lower sequentially and slightly lower year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were lower; capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$232.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$368.9M
Cash generated by operations before capital spending.
CapEx
$136.2M
Capital spending and related asset purchases.
FCF margin
4.8%
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 |
|---|---|---|---|---|---|
| 2023-07-29 | $4.9B | $703.1M | $196.2M | $506.9M | 10.3% |
| 2023-10-28 | $4.9B | $449.5M | $177.0M | $272.5M | 5.5% |
| 2024-02-03 | $6.0B | $948.8M | $222.4M | $726.4M | 12.1% |
| 2024-05-04 | $4.9B | $368.9M | $136.2M | $232.7M | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.2B | 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 Weakening
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even though revenue was higher year over year. This drove the decline in free cash flow and margin.
The lower operating cash flow reduced free cash flow generation relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter. Capital expenditure also decreased, resulting in free cash flow that was lower sequentially and slightly lower year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were lower; capital expenditure was also lower.
Monitor the trend in operating cash flow, which declined both sequentially and year over year despite higher revenue.