Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the preceding quarter and the same quarter last year, driven by stronger operating cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Revenue increased from both the prior quarter and the year-ago period, while operating cash flow rose more sharply, leading to a higher free cash flow. Capital expenditure was lower sequentially but higher year over year, and the free cash flow margin improved versus both comparison periods.
- Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow increasing and capital expenditure decreasing. Versus the same quarter last year, free cash flow and margin also improved, as operating cash flow growth outpaced a moderate rise in capital expenditure.
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
$854.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$327.8M
Capital spending and related asset purchases.
FCF margin
29.3%
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 |
|---|---|---|---|---|---|
| 2023-11-30 | $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% |
| 2024-08-31 | $2.9B | $1.2B | $327.8M | $854.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | 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 same quarter last year, providing the primary lift to free cash flow. This occurred even as capital expenditure was higher than a year ago.
The stronger operating cash flow drove a higher free cash flow margin, indicating improved cash conversion efficiency in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago period, while operating cash flow rose more sharply, leading to a higher free cash flow. Capital expenditure was lower sequentially but higher year over year, and the free cash flow margin improved versus both comparison periods.
Compared to the preceding quarter, free cash flow and margin were substantially higher, with operating cash flow increasing and capital expenditure decreasing. Versus the same quarter last year, free cash flow and margin also improved, as operating cash flow growth outpaced a moderate rise in capital expenditure.
Monitor capital expenditure trends, as they can influence future free cash flow generation relative to operating cash flow.