Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter, leading to higher free cash flow and a stronger free cash flow margin. Compared to the same quarter last year, free cash flow and its margin were lower despite higher revenue.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, yet free cash flow margin improved sequentially while weakening year over year.
- Sequentially, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Year over year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$394.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$592.1M
Cash generated by operations before capital spending.
CapEx
$197.5M
Capital spending and related asset purchases.
FCF margin
7.5%
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 |
|---|---|---|---|---|---|
| 2023-10-28 | $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% |
| 2024-08-03 | $5.3B | $592.1M | $197.5M | $394.6M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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.
Sequential cash generation improvement
Operating cash flow increased from the prior quarter, and the rise in free cash flow margin indicates a stronger conversion of revenue into free cash flow in the current quarter.
This sequential improvement in free cash flow margin was the strongest observable driver of the quarter's cash performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. Capital expenditure increased from both comparison periods, yet free cash flow margin improved sequentially while weakening year over year.
Sequentially, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Year over year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher sales.