Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved from the same quarter last year but weakened from the prior quarter. Revenue, operating cash flow, and free cash flow were lower than the preceding quarter yet higher than a year ago.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure increased relative to both periods, resulting in a free cash flow margin that improved from a year ago but weakened from the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher. Free cash flow and its margin declined. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and the free cash flow margin improved.
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
$394.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$724.8M
Cash generated by operations before capital spending.
CapEx
$329.9M
Capital spending and related asset purchases.
FCF margin
16.0%
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 |
|---|---|---|---|---|---|
| 2023-02-28 | $2.0B | $476.3M | $351.6M | $124.7M | 6.2% |
| 2023-05-31 | $2.5B | $665.4M | $277.0M | $388.4M | 15.4% |
| 2023-08-31 | $2.8B | $956.6M | $305.0M | $651.6M | 23.0% |
| 2023-11-30 | $2.5B | $724.8M | $329.9M | $394.9M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | 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
Operating cash flow decreased from the prior quarter but increased from the year-ago quarter. This change was the most notable among the components of free cash flow.
The decline in operating cash flow compared to the prior quarter was the primary reason for the lower free cash flow.
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 lower than the prior quarter but higher than the same quarter last year. Capital expenditure increased relative to both periods, resulting in a free cash flow margin that improved from a year ago but weakened from the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was higher. Free cash flow and its margin declined. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and the free cash flow margin improved.
The level of capital expenditure, which increased relative to both comparison periods, should be monitored for its effect on future free cash flow.