Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, while free cash flow improved sequentially but declined year-over-year, leading to a mixed free cash flow margin. The quarterly filing notes share repurchase authorizations and the company's market position.
- Operating cash flow was higher than the prior quarter, but capital expenditure also rose, leading to free cash flow that was higher sequentially but lower than the year-ago period. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin strengthening. Versus the same quarter one year earlier, revenue and operating cash flow were slightly higher, but capital expenditure was notably higher, causing free cash flow and margin to decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$315.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$690.5M
Cash generated by operations before capital spending.
CapEx
$375.3M
Capital spending and related asset purchases.
FCF margin
11.8%
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 |
|---|---|---|---|---|---|
| 2023-08-31 | $2.8B | $956.6M | $305.0M | $651.6M | 23.0% |
| 2023-11-30 | $2.5B | $724.8M | $329.9M | $394.9M | 16.0% |
| 2024-02-29 | $2.1B | $433.2M | $357.2M | $76.0M | 3.6% |
| 2024-05-31 | $2.7B | $690.5M | $375.3M | $315.2M | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.0B | 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 increased compared to both the prior quarter and the year-ago quarter, providing the foundation for higher free cash flow despite a rise in capital spending.
This improvement supported a stronger free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter, but capital expenditure also rose, leading to free cash flow that was higher sequentially but lower than the year-ago period. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the immediate prior quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin strengthening. Versus the same quarter one year earlier, revenue and operating cash flow were slightly higher, but capital expenditure was notably higher, causing free cash flow and margin to decline.
Capital expenditure levels should be monitored, as they increased substantially from the prior year and may affect future free cash flow generation.